LEARNING ACTIVITY SHEETS

BUSINESS MATH
QUARTER 2,WEEK 2

Name of Learner:_________________________________________________ Date:___________

Grade and Section:____________________

Down Payment, Gross Balance, Current Increased Balance, and Solving Interests and Commissions

I. Learning Competency
At the end of this module, you are expected to (ABM_BM11BS-IIb-14):
1. Compute for down payment, gross balance, and current increased balance.
2. Solve problems involving interests and commissions.

II. Key Concept

DOWN PAYMENT
It is the first payment that one makes when he/she buys something with an agreement to pay the rest
later.
EXAMPLE 1 (DOWN PAYMENT)
Mrs. Hudson wanted a car that needs an 18% down payment. The car that she wanted costs Php3,500,000.
How much should she pay?
Solution:
18% ----> 0.18 x Php 3,500,000 = Php630,000
Thus, Mrs. Hudson’s down payment is Php 630,000 to avail the car.

GROSS BALANCE
It refers to the total amount of money a bank has on deposit before adjusting for uncleared checks or
deposits, as well as reserve requirements. It is also a measure of what the bank has on hand before adding or
subtracting regulatory obligations and items that will soon appear on its books. It can also be called as Book
Balance.
EXAMPLE 2 (GROSS BALANCE)
Assuming that you have a total of Php30,000 on your card and you deposited this day a check that amounts to
Php10,000. Your bank passbook currently contained Php40,000 but you can only withdraw Php30,000 until
tomorrow; this is your gross balance because your check has not been cleared yet.

INCREASED BALANCE
It refers to the total amount you have to pay that includes penalties or interest incurred by unpaid balance from
a loan or payment you are supposed to have made but was not able to do so.
EXAMPLE 3 (INCREASED BALANCE)
The due for this month’s credit card is Php2,500, and the bank requires a payment of 5% minimum for the total
amount due. If the card holder only pays the minimum 5%, he/she will get an additional penalty of 2%. How
much will be the increased balance?
Solution:
The due is Php2,500 and the minimum required payment is 5% of this due,
Php2,500 x 0.05 = Php125, this is the only amount you paid.
The remaining balance is:
Php2,500 – Php125 = Php2,375
Since you will have a penalty of 2%
Php2,375 x 0.02 = Php47.50
Your current increased balance will be
Php2,375 + Php47.50 = Php2,422.50
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Although you paid Php125 for the minimum required payment, because of this you got a penalty so it only
deducts a total of Php77.50.

INTEREST
It refers to the method of calculating the interest amount for some principal amount of money.
The formula for simple interest is:
Interest = PRT, wherein;
Principal – the amount of borrowed money
Rate – the percentage
Time – in years/months
Maturity Value = Interest + Principal Amount
EXAMPLE 4 (INTEREST)
Molly Hooper borrowed money worth Php36,000 per annum with an interest rate of 12% per month for 6
months. How much is the interest? How much will be the maturity value?
Solution:
Formula: Interest = PRT
Given:
Principal = 36,000
Rate = 12% ------ > 0.12
Time = 6 months ----- > 6/12 (since it is per annum)
Interest = Php36,000 x 0.12 x (6/12)
Interest = Php2,160
Maturity Value = Interest + Principal
= Php2,160 + Php36,000
Maturity Value = Php38,160

COMMISSION
Since we already tackled commission on our previous module. Here’s one example about this matter
EXAMPLE 5 (COMMISSION)
Mr. Lestrade works in a commission only shop in Bataan. His boss gave him 5% commission in every sale he
can make. He happened to sell a washing machine worth Php25,000. How much is his commission for this?
Solution:
Formula: Commission = Commission Rate x Total Sales
Given:
Commission Rate = 5% ----- > 0.05
Total Sales = Php25,000
Commission = 0.05 x Php25,000
Commission = Php1,250

III. Activities

ACTIVITY 1
DIRECTION:Write the letter of the correct answer.(10 points)
_________1. What is the formula for interest?
a. I = PRT b. I = T/PR c. I = P/RT d. I = IRT
_________2. It is the fee that a company pays for its sales agents in exchange of their services.
a. Interest b. Rate c. Maturity Value d. Commission
_________3. All of the following are needed in computing Interest, EXCEPT?
a. Commission Rate b. Principal c. Interest Rate d. Time
_________4. What is the other word for Book Balance?
a. Book Increase b. Gross Balance c. Commission d. Increased Balance
_________5. It refers to the total amount of money a bank has on deposit before adjusting for uncleared checks
or deposits, as well as reserve requirements.
a. Interest b. Increase Balance c. Gross Balance d. Commission
_________6. What is the formula for Maturity Value?
a. Rate + Interest b. Interest x Principal c. Interest + Principal d. Rate x Interest
_________7. Which refers to the amount of borrowed money?
a. Principal b. Time c. Interest d. Rate
_________8. It is the first payment that one makes when he/she buys something with an agreement to pay the
rest later.
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a. Gross Balance b. Down Payment c. Increase Balance d. Interest
_________9. It refers to the method of calculating the interest amount for some principal amount of money.
a. Gross Balance b. Down Payment c. Increase Balance d. Interest
_________10.What will you do if the time given is in months?
a. Subtract it by 12 b. Multiply it by 12 c. Add 12 d. Divide it by 12

Activity 2
Direction: Complete the table below. (10 points)
Numbers 1 and 2 are done for you!
1. Interest = (13,100)(0.03)(5) = Php1,965
2. Maturity Value = Php1,965 + Php13,100 = Php15,065
RATE TIME PRINCIPAL INTEREST MATURITY
(IN YEARS) VALUE
3% 5 Php13,100 (1) (2)
(3) 7 Php10,000 Php7,000 (4)
5% (5) (6) Php2,000 Php8,000

PERFORMANCE TASK 2
DIRECTIONS: Solve the following problems involving single trade discounts and discount series. Write your
answers on a short bondpaper.(10 points)
1. Dr. Bailey borrowed Php50,000 from a bank with an interest rate of 8% per annum for 5 years.
a. How much is the interest?
b. How much will be the maturity value?
2. Steven’s due for his credit card is Php3,000. The bank requires all their users to have at least 3% required
minimum payment, but they will get a penalty of 1% if they didn’t pay in full. How much will be the increased
balance for this?
3. George is a sales agent that has a basic salary of Php18,000. He also gets 7% commission from the things
he can sell. Fortunately, he sold items worth Php89,000 last June.
a. How much is his commission?
b. How much is his total earnings for the month of June?

Reflection:
What have you learned from this activity?
Reference:
BUSINESS MATH, Quarter 2- Down Payment, Gross Balance, Current Increased Balance, and Solving
Interests and Commissions

Prepared by:

BLEZEEL V. SANGUESA
SHS Teacher II

Checked by:

MINERVA C. PUNO
Assistant School Principal II

Noted:

CATALINA A. SALUM, Ed.D.

School Principal IV