WEEKLY LEARNING ACTIVITY SHEETS

Bus. Math 11, Quarter 2, Week 2

SOLVE PROBLEMS INVOLVING INTERESTS AND COMMISSION

Name: ____________________________________ Section: ________________

Most Essential Learning competencies

➢ Solving problems involving interests and commissions :(ABM_BM11BS-11a-14).
Learning Objectives:
➢ define interest and commission;
➢ differentiate ordinary interest from exact interest;
➢ solve problems involving sales tax, commission, discount and other
interests;
➢ apply interest and commission on realistic daily-life situation.

Time Allotment: 4 hours

Key Concepts
• INTEREST: Most businesses and people acquire assets without paying its full
cost at the time of purchase. The seller may then charge the buyer for this
privilege. The amount of charge for such a privilege is called interest.
➢ SIMPLE INTEREST AND MATURITY VALUE: This is where interest is
paid only on the original amount of money or principal.
Example 1: James owed an amount of P100,000 from a friend at an
interest rate of 6.5%. How much is the interest payable for this November
in his due date?
Solution: Given: P = P100,000, R = 6.5% or 0.065 T = 1 year
Formula: I = PRT = P100,000 (0.065) (1) = P6,500
➢ The Maturity value M that the lender receives from the debtor on the
maturity date of the loan is equal to sum of the principal P and the
simple interest I. That is, we have M = P + I, since I = PRT, we get
M = P + PRT = P(1 + RT).
Example 2: Find the maturity value of a loan of P10,000 borrowed at an
interest rate of 14% if it has to be repaid for 20 m0nths.
.14
Solution: M = P (1 + RT) = 10,000 (1 + 12 ) 20 = 𝑃12,333.33
• ORDINARY AND EXACT INTEREST: Suppose the term of the loan is stated
as a certain number of days: Ordinary interest = 365(as divisor), Exact interest
= 360(as divisor).
➢ We replace the formula in I = PRT, where T is expressed in days:
𝑅
For ordinary interest: 𝐼 = 𝑃 (360) 𝑇
𝑅
For exact interest: 𝐼 = 𝑃 ( ) 𝑇
365
Example 1: A manager wants to know which credit company offers lower
Interest at the same interest rate of 12% if he plans to borrow a quick cash
Of P300,000 for 120 days. Bank A uses the ordinary interest and bank B
uses exact interest. Which bank will he choose?
Solution: Bank A:

Author: Reynaldo V. Daniela

School/Station: Tagbina National High School
Division: Surigao del Sur
Email address: reynaldo.daniela001@deped.gov.ph
 𝑅 .12
For ordinary interest: 𝐼 = 𝑃 ( ) 𝑇 = 300,000 ( ) 120 = 𝑃12,000
360 360
Solution: Bank B:
𝑅 .12
For exact interest: 𝐼 = 𝑃 (365) 𝑇 = 300,000 (365) 120 = 𝑃11,835.62
The manager will choose Bank B.

• SOLVING PROBLEMS INVOLVING SALES TAX, COMMISSION, DISCOUNT

Sales Tax: Sales Tax = Sales tax rate (as a decimal) x Purchase price
Total price = Purchase price + sales tax
Example: How much sales tax is charged on an item that costs
P15,000. If the sales tax rate is 5%, what is the total price of the item?
Solution: Sales Tax = Sales tax rate (as a decimal) x Purchase price
= .05 x P15,000 = P750
Total price = Purchase price + sales tax
= P15,000 + P750
= P15,750
Commission: When you work for commission, you are paid a percentage of
the total sales you complete.
Commission = commission rate x sales
Example: Joshua’s sales commission rate is 6%. What is the commission
from the sale of P150,000 worth of new car sales?
Solution: Commission = commission rate x sales
= .06 x 150,000
= P9,000
Note: commission topics have been discussed during week 1. Please refer
to the Week 1 Learning Activities (LAS)
Discount: deduction of amount from the usual cost of something, typically
given for prompt or advance payment or to a special category of buyers.
Example: Suppose that the regular price of an item is P180, and the item
is on sale at 35% off. Since 35% of P180 is P63, the sales price is P180- 63 or
P117. We call P180 the original price or marked price. 35% the rate of
discount, P63 is the discount and P117 the sales price.
Discount = Rate of discount x original price
Sale Price= Original Price – discount.

ACTIVITIES:

Activity No.1:
Direction: Please solve and answer the following problems. Write your final
answer after each number except number 3 that you can write your answer on
the table provided. Use separate paper for the solutions but do not pass.
Compare your answers in the answer’s key.

a. Help Mr. Jotham decide which lending company he can possibly takes a credit
for an amount of P200,000 at 7.5% for 180 days. Lending Co. A uses ordinary
interest while lending company B uses exact interest. _________________

Author: Reynaldo V. Daniela

School/Station: Tagbina National High School
Division: Surigao del Sur
Email address: reynaldo.daniela001@deped.gov.ph
 b. Find the maturity value of a loan of P1,000 borrowed at an interest rate of
0.2% if it has to be paid for 20 m0nths. _______________
c. Find the missing variable using the basic interest formula of an ordinary
Interest method.
Principal Rate Time Interest
1 P6,000 6% 60 days
2 P1,500 90 days P30
3 P1600 135 days P42
d. How much sales tax is charged on an item that costs P150,000. If the sales
tax rate is 15%, what is the total price of the item? __________,___________
e. Josh sales commission rate is 16%. What is the commission from the sale of
P350,000 worth of new appliances sales? _____________
Activity no. 2 (Performance Task):
Direction: Please do answer what is being asked. Write your answer in the space
provided for you. This is to be passed.
Situation: Ask your mother, father, relatives or friends if they have owed or borrowed
money from someone or a lending company or banks and how much is the interest
applied to their loans (do not ask how much is their loan to avoid misconception or
if they have agreed to mention the amount they have owed, much better). Show to
them the difference between ordinary and exact interests by having an estimate
amount of loan (if they will not mention the amount they have borrowed). Show the
process on how their loans are being computed.
Ordinary interest Exact interest:
Principal amount: ____________ Principal amount: ____________
Interest: _______ Interest: _______
No. of days: _________ No. of days: _________
Computation: Computation:

Activity no. 3: (Performance Task)

Direction: Estimate the selling price of a newest car you have seen in your life.
If you are given a chance to sell it with a commission of 10%, how much would
be your actual commission? Please answer at the space provided.
Given: car price = P_____
Interest = 10%
Commission = __________

Author: Reynaldo V. Daniela

School/Station: Tagbina National High School
Division: Surigao del Sur
Email address: reynaldo.daniela001@deped.gov.ph
Reflection: as a business enthusiast, does your knowledge of solving problems
involving interests and commission is essential in your life today and in the future?
Please reflect your answers in the space provided.
My reflection to this topic

Answers’ key:

Activity No.1
a. Company B b. P1,003.33 c. (1) 60 (2) 8% (3) 7% d.P22,500, P172,500 e.P56,000

Activity No. 2 (Performance Task) – means you need to answer by your own.

Activity No. 3 (Performance Task) – means you need to answer by your own.
Rubrics for the Performance Task and Reflections

Categories Excellent (5) Satisfactory (4) Developing (3) Beginning (2)

Mathematical Concept Demonstrate a thorough Demonstrate an Demonstrate incomplete Shows lack of
understanding of the understanding of the understanding and have understanding and has
topic appropriately. concepts and use it to some misconceptions severe misconceptions.
simplify the problem
Accuracy of All computations are The computations are Generally, most of the Errors in computations
computation correct and are logically correct but are not computations are not are severe.
presented. arranged. correct.
Practicality The output is suited to The output is suited to The output is suited to The output is not suited
the needs and can be the needs and can be the needs and cannot be to the needs and cannot
executed easily. executed easily. executed easily. be executed easily.
solutions presented are Solutions presented are
correct and neat. correct but not
arranged.
Organization of the Highly organized, flows Satisfactorily organized. Somewhat cluttered. Illogical and obscure. No
Concept smoothly, observes Sentence flow is Flow is not consistently logical connections of
logical connections of generally smooth and smooth, appears ideas. Difficult to
points. logical. disjointed. determine the meaning.

Reference for Learners:

Lopez, Brian Roy C., Martin – Lundag, Leah C., Dagal, Keneth Adrian P. “Business
Mathematics, Senior High School, pp 104 - 106”

Author: Reynaldo V. Daniela

School/Station: Tagbina National High School
Division: Surigao del Sur
Email address: reynaldo.daniela001@deped.gov.ph