SENIOR

Business Math
0
HIGH
SCHOOL

Module
Solve Problems Involving Interests
and Commissions 3
Quarter 2
Business Math
Quarter 2 – Module 3: Solve Problems Involving Interests and Commissions
First Edition, 2020

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Published by the Department of Education Division of Pasig City

Development Team of the Module

Writer: Zara Jane D. Astete
Editors: Nenet M. Peñaranda
Reviewers: Carmelita B.. Peralta
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Management Team: Ma. Evalou Concepcion A. Agustin
OIC-Schools Division Superintendent
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Victor M. Javeña, Ed. D.
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10. Teresita P. Tagulao, Ed. D., Mathematics

Printed in the Philippines by Department of Education – Division of Pasig City

Business SENIOR
HIGH

Math
SCHOOL

Module

3
Quarter 2

Solve Problems Involving Interests

and Commissions
Introductory Message

For the facilitator:

Welcome to the Business Math for Senior High School Module on Solve Problems
Involving Interests and Commissions!

This module was collaboratively designed, developed and reviewed by educators

from Schools Division Office of Pasig City headed by its Officer-In-Charge Schools
Division Superintendent, Ma. Evalou Concepcion A. Agustin in partnership with
the Local Government of Pasig through its mayor, Honorable Victor Ma. Regis N.
Sotto.
The writers utilized the standards set by the K to 12 Curriculum using the Most
Essential Learning Competencies (MELC) while overcoming their personal, social,
and economic constraints in schooling.

This learning material hopes to engage the learners into guided and independent
learning activities at their own pace and time. Further, this also aims to help
learners acquire the needed 21st century skills especially the 5 Cs namely:
Communication, Collaboration, Creativity, Critical Thinking and Character while
taking into consideration their needs and circumstances.

In addition to the material in the main text, you will also see this box in the body of
the module:

Notes to the Teacher

This contains helpful tips or strategies
that will help you in guiding the learners.

As a facilitator you are expected to orient the learners on how to use this module.
You also need to keep track of the learners' progress while allowing them to
manage their own learning. Moreover, you are expected to encourage and assist the
learners as they do the tasks included in the module.
For the learner:

Welcome to the Business Math Module on Solve Problems Involving Interests and
Commissions!

The hand is one of the most symbolized part of the human body. It is often used to
depict skill, action and purpose. Through our hands we may learn, create and
accomplish. Hence, the hand in this learning resource signifies that you as a
learner is capable and empowered to successfully achieve the relevant
competencies and skills at your own pace and time. Your academic success lies in
your own hands!

This module was designed to provide you with fun and meaningful opportunities
for guided and independent learning at your own pace and time. You will be
enabled to process the contents of the learning material while being an active
learner.

This module has the following parts and corresponding icons:

Expectation - These are what you will be able to know after

completing the lessons in the module

Pre-test - This will measure your prior knowledge and the

concepts to be mastered throughout the lesson.

Recap - This section will measure what learnings and skills

that you understand from the previous lesson.

Lesson- This section will discuss the topic for this module.

Activities - This is a set of activities you will perform.

Wrap Up- This section summarizes the concepts and

applications of the lessons.
Valuing-this part will check the integration of values in the
learning competency.

Post-test - This will measure how much you have learned from
the entire module.
 EXPECTATION
At the end of the learning module, you are expected to:

1. solve problems involving interests and commissions.

PRETEST

Direction: Write the letter of the correct answer.

1. Noel makes money by commission rates. He gets 12% of

everything he sells. If Noel sold Php 200,000 worth of items this
month, how much is his commission for the month?
a. Php 2,400 c. Php 24,000
b. Php 4,200 d. Php 42,000
2. JC makes Php16,500 a month plus some money by commission
rates. He gets 7.25% of everything he sells. If JC sold
Php75,122.60 worth of items this month, what is his salary for the
month?
a. Php 4,554.39 c. Php 21,054.39
b. Php 5,446.39 d. Php 21,946.39
3. Cyrus receives Php 13,500 as monthly salary. As an agent, his
monthly quota is Php 30,000 worth of cleaning products for which
he gets 4.5% commission on all sales beyond his monthly quota. If
he sold Php 65,420 worth of cleaning products this month, what is
his total salary for this month?
a. Php 1,593.90 c. Php 15,093.90
b. Php 2,943.90 d. Php 16,443.90
4. Michaela borrowed money from Metro City Savings of Php500,000
and is to be repaid in full after 3 years. What is the amount to be
paid if the effective rate of interest is 7.5%?
a. Php 612,148.44 c. Php 614,128.44
b. Php 621,148.44 d. Php 641,128.44
5. Chuckie obtained a 30-year mortgage for Php 3,500,000. If his
monthly payment is Php16,500 , how much is the total interest?
a. Php 2,440,000 c. Php 3,540,000
b. Php 2,940,000 d. Php 5,940,000
 RECAP
Delos Reyes Family was able to buy a house and lot worth
Php 2,500,000 which would be financed through bank. The required
down payment was 20% of the unit price.
1. How much was the down payment paid by the buyer?
a. Php 40,000 c. Php 400,000
b. Php 50,000 d. Php 500,000
2. How much was the gross balance or the amount to be financed
through PAG-IBIG?
a. Php 500,000 c. Php 1,500,000
b. Php 1,000,000 d. Php 2,000,000
3. How much is the current increased balance if the bank charges
an interest rate of 15%?
a. Php 575,000 c. Php 1,725,000
b. Php 1,150,000 d. Php 2,300,000

LESSON

Consider the problem.

Example 1: Alyssa Denise is a sales agent for medical equipment. She
has a monthly commission plan where she receives 5% on the first
sales. She gets 3% on sales above Php 70,000 and 2% of everything
over Php 120,000 is received. If her sales during the month is Php
245,000, compute her commission.
Solution: We compute for the commission as follows:
Php 245,000(0.05) = Php 12,250

To compute her commission on sales above Php70,000

Php 245,000 – Php 70,000 = Php 175,000
Php 175,000(0.03) = Php 5,250

To compute her commission on sales above Php120,000

Php 245,000 – Php 120,000 = Php 125,000
Php 125,000(0.02) = Php 2,500

Total Commission = Php 12,250 + Php 5,250 + Php 2,500

 = Php 20,000
Example 2: Mary Desere is paid a monthly salary of Php 16,000 and
earns a commission of 3.75% in sales. If she sold a total amount of
Php 94,255.50 during the month, how much is her gross?

Solution: Mary Desere’s commission computed as

Php 94,255.50(0.0375) = Php3,534.58
Her gross pay for the month
Php 16,000 + Php 3,534.58 = Php 19,534.58

Example 3: Mr. Abordo, a gadget agent, sold laptops for Php 30,000
and got a Php 600 commission. What was his commission rate?

Solution: To solve for Mr. Abordo’s commission rate,

Commission rate = (commission ÷ amount of purchased x 100%)
= (Php 600 ÷ Php 30,000 x 100%)
= 2%

Example 4: Ace invested his savings at an annual interest rate of 6%,

the amount earned Php 112,000 of simple interest in two years. How
much money was originally invested?

Solution: Ace’s amount of money originally invested is computed as

𝐹𝑢𝑡𝑢𝑟𝑒 𝑉𝑎𝑙𝑢𝑒 𝑃ℎ𝑝112,000

𝑷𝒓𝒊𝒏𝒄𝒊𝒑𝒂𝒍 = = = 𝑷𝒉𝒑𝟏𝟎𝟎, 𝟎𝟎𝟎
1 + (𝑟𝑎𝑡𝑒)(𝑡𝑖𝑚𝑒) 1 + (0.06)(2)

Example 5: Find the maturity value and the compound interest if

Janna borrowed money of Php 56,000 compounded semi-annually at
an interest rate of 2% in 5 years.

Solution: To find the maturity value of Janna’s borrowed money

Given: P = Present Value = Php 56,000
i = nominal rate = 2% = .02
m = frequency of conversion = 2 ( semi-annually)
t = time in years = 5 yrs.
Find: a. Future Value or Maturity Value =?
Formula:
𝑖 𝑚𝑡 𝑖 𝑚𝑡 0.02 2(5)
𝑭 = 𝑃 (1 + ) = 𝑃 (1 + ) = 𝑃ℎ𝑝56,000 (1 + ) = 𝑷𝒉𝒑𝟔𝟏, 𝟖𝟓𝟖. 𝟖𝟒
𝑚 𝑚 2
b. Compound interest
Interest = Future value – Present value
= Php 61,858.84 – Php 56,000
Interest = Php5,858.84
 Example 6: Eunice borrowed Php 1,000,000 for the expansion of her
business. The effective rate of interest is 7%. The loan is to be repaid
in full after 3 years.
a. How much is to be paid after 3 years?
b. How much is the interest?

Solution: a. Amount of money to be paid by Eunice after 3 years = F

Given: P = Present Value = Php 1,000,000
j = rate = 7% = .07
t = time in years = 3 years
Find: F = Future Value = ?

Formula: 𝑭 = 𝑷(𝟏 + 𝒋)𝒕

= Php1,000,000 (1 + 0.07)3
F= Php 1,225,043.00

b. The interest of the borrowed money after 3 years

Interest = Future value – Present value

= Php 1,225,043 – Php 1,000,000
I = Php 225,043.00

Example 7: A person borrowed Php 1,400,000 for the purchase of a

car. If his monthly payment is Php 29,000 on a 5-year mortgage, find
the total amount of interest.

Solution:
Amount of interest = total payment for 5 years – amount
borrowed

Total Payment for 5 years is computed as

= Php29,000 (monthly payment) x 12 months in a year x 5 (year of

mortgage)
= Php1,740,000

Amount of Interest = Php1,740,000 – Php1,400,000

I = Php 340,000
 ACTIVITIES

Solve the following problems:

1. Raffy receives Php 12,000 a month corresponding to a sales of

Php 20,000 worth of goods. Furthermore, he receives an additional
5% commission for all sales beyond his monthly quota but not
greater than Php 40,000. An additional 6% commission is for sales
beyond Php 40,000. If his sales is Php 65,000 for the month, how
much is his salary for the month?
2. Find the maturity value and interest if Jacob invested his money
Php 150,000 at 6% compounded monthly for 8 years.
3. Anya, a real-estate agent, receives a 4% commission of
Php 200,000 for selling a house. What was the price of the house?
4. Tet borrowed Php 150,000 from a bank with 6.5% effective rate of
interest. What is the amount to be paid after 5 years?
5. Sofia obtained a house of 25-year mortgage for Php2,450,000. If
his monthly payment is Php 15,500 , how much is the total
interest?

WRAP UP
1. What are the terms we have to consider in solving
commission? Interest?
2. How do we solve for commission?
3. How do we solve for interest?

VALUING
We should know our priorities in life, earn more money than
you spend. Control your financial situation. Do not borrow money
to purchase unnecessary things.

As a student, why do you think saving and investing money

is important?
 POST-TEST

Direction: Write the letter of the correct answer.

1. Ms. Lejero purchased a house worth Php 4,800,000. If his monthly

payment is Php 25,000 , how much is the total interest if it is
payable for 20 years?
a. Php 120,000 c. Php 1,200,000
b. Php 500,000 d. Php 6,000,000
2. Randy loaned an amount of Php 1,200,000 to be repaid in full
after 5 years. What is the interest if the effective rate is 8%?
a. Php 563,193.69 c. Php 1,563,193.69
b. Php 763,193.69 d. Php 1,763,193.69
3. Kim makes money by commission rates. She gets 7.5% of
everything he sells. If Kim sold Php 160,000 worth of items this
month, how much is her commission for the month?
a. Php 12,000 c. Php 24,000
b. Php 16,000 d. Php 32,000
4. Andrei receives 20% commission on the gadgets she sells. If she
was able to sell a cellphone for Php 8,000, a laptop for Php 22,000,
and a camera for Php 1,800, how much does Andrei make in
commission?
a. Php 6,360 c. Php 6,036
b. Php 6,630 d. Php 6,063
5. Tricia sold her car and invested her Php350,000 at 8%
compounded quarterly. Find the interest if she invests for 3 years.
a. Php 93,884.63 c. Php 443,884.63
b. Php 94,884.63 d. Php 444,884.63

KEY TO CORRECTION
4. b
5. a 3. a
4. b 2. a
3. d
3. c 1. c
2. d
2. d A.
1. d
1. c POSTTEST
A. A.

PRETEST RECAP
 5. Php 2,200,000
4. Php 205,513
3. Php 5,000,000
/ Php 92,121.41
2. Php 242,121.41
1. Php 14,500

Activities

R E F E R E N CE S
Books:

1. Commission on Higher Education (2016). Teaching Guide for Senior

High School Business Mathematics

2. Department of education: Bureau of Learning Resources(2016).

GENERAL MATHEMATICS LEARNER’S MATERIAL.

3. I. Solano (2020), Business Math (Second Edition), DIWA Learning

System

4. N. Lopez-Mariano (2016). Business Mathematics, Rex Book Store,

Inc.

Web:

1. https://www.makingsenseofcents.com/2018/05/29-money-and-

life-lessons.html