BUYING AND SELLING

ACTIVITY 2. INTEREST ME MORE.

A. B. Directions: Can you explain why the following are the kind of commission
they claim to be?
1. Barbara receive a commission of 4.5% on the first P2,500 sales and 6% of
all sales over P2,500. (Graduated Commission)
2. A stock broker receives a commission of 11% for selling annuities to her
clients. (Straight Commission)
3. Jose makes P10,000 a month plus some money by commission rates. He
gets 6% of everything else. (Salary Plus Commission)
4. Dale is paid a commission of 4% of the first P2,000 of his sales, and 5.5%
of all sales over P2,000. (Graduated Commission)
5. A car salesman earns a 3% commission on sales. He sells a car for
P2,227,990. (Straight Commission)
B. Directions. The answers to the following exercises are given below. Provide the
solutions.
1. After 5 years, Pilong earned a simple interest of P90,000 from a P300,000
investment. What is the interest rate of the said investment? (6%)
2. Determine the principal amount that you need to invest at a simple annual
interest of 8% to have a total amount of P446,400 at the end of three years?
(Php 360,000)
3. Suppose you invest P50,000 at 15% interest rate, compounded semi-annually.
Determine the future value of your investment after 3 years. (≈ Php 77,165.08)
4. A Philippine bank learned that Bareg Corporation is planning to invest P50,000
in a foreign bank. So the Philippine Bank convinced the corporation to invest in
them instead. They offered the corporation an interest rate of 6%, compounded
quarterly, for 10 years. Approximately how much will be the future value of the
corporation’s investment if they will accept the offer of the Philippine Bank.
(≈ Php 90,700.020.43)