SHS

Business Mathematics
Quarter 2: Module 2
Business Mathematics
Grade 11: Quarter 2: Module 2
First Edition, 2020

Copyright © 2020
La Union Schools Division
Region I

All rights reserved. No part of this module may be reproduced in any form without
written permission from the copyright owners.

Development Team of the Module

Author: Donna M. Casilla, T-II

Editor: SDO La Union, Learning Resource Quality Assurance Team

Illustrator: Ernesto F. Ramos Jr., P II

Management Team:

Atty. Donato D. Balderas, Jr.

Schools Division Superintendent

Vivian Luz S. Pagatpatan, Ph.D

Assistant Schools Division Superintendent

German E. Flora, Ph.D, CID Chief

Virgilio C. Boado, Ph.D, EPS in Charge of LRMS

Lorna O. Gaspar, EPS in Charge of ABM

Michael Jason D. Morales, PDO II

Claire P. Toluyen, Librarian II
 Business
Mathematics
Quarter 2: Module 2

0
 Target

Employment law does not provide a specific definition of a wage or

salary earner. However, generally speaking, the term “wages” is used where
the amount of money the employee receives may vary from one pay period to
the next, as the amount paid is directly dependent on the amount of hours
worked; and the term “salary” refers to an agreed and fixed annual amount of
money the employee receives regardless of the hours worked.

This module will provide you with information and activities that will
help you understand more about interests and commissions. It also helps you
understand more about salary, wage, income, benefits, gross and net
earnings.

After going through this module, you are expected to:

a. Solve problems involving interests and commissions

(ABM_BM11B S-IIb-14)
 Define interests and commissions
 Compute for commission earned on a particular cash sale
 Compute interest due on loan
 Find the maturity value on a loan or the future value on
invested capital
 Differentiate ordinary interest and exact interest, and be able to
compute for the same
b. Define salary, wage, income, benefits (ABM_BM11S W-IIc-1)
c. Compute gross and net earnings (ABM_BM11S W-IId-2)

1
 Lesson
Commissions and Interests
1
Let us start your journey in learning more on interests and commissions.
I am sure you are ready and excited to answer. Smile and Enjoy!

Jumpstart

Pre-test
1. Which is TRUE about graduated commission?
A. A commission based on percentage only.
B. A commission which varies according to how much sales is made.
C. It is based on a flat arrangement or as a percentage of the revenue
generated by a salesperson.
D. It is a commission in which a salesperson gets his basic salary and
a percentage of whatever sales he makes.
2. Which of the following is INCORRECT about straight commission?
A. Commission based on percentage only.
B. It is also called as revenue commission.
C. It is a form of payment to an agent for services rendered.
D. This is very profitable if you are selling high-ticket items.
3. Which situation illustrates a salary plus commission?
A. A person who receives only salary.
B. A person who receives only commissions.
C. A person who gets paid a salary and a % of sales.
D. A person who paid percentage (%) changes based on how much
he/she sells.
4. Shin Hye is a car sales agent. She is paid commission only at the rate of
2.5%. For the current month, she sold two cars totaling ₱1 875 000.00.
What will be her commission?
A. ₱18,630.00 B. ₱20,450.00 C. 40,875.00 D. ₱46,875.00

2
5. Carmela is a sales agent for the High Ace Realty. She is paid based on
commission only. She is given a 2% commission on her sales. For the
current month, her sales were ₱1 035 000.00. What is her commissions?
A.₱15,455.00 B. ₱20,700.00 C. ₱29,700.00 D. ₱30,155.00
6. Which is TRUE about salary?
A. It is the remuneration given an employee in exchange of his or her
services.
B. It refer to earnings received by worker on a piece rate, hourly rate,
or daily rate.
C. The benefits of employees paid on monthly or annual basis.
D. These include vacation and sick leaves, medical and hospitalization
benefits, meal and transportation allowance.
7. Which of the following sentences BEST describes wage?
A. The earnings received by workers on a piece rate, hourly rate, or daily
rate.
B. Workers are paid in proportion quantity of work he or she finishes.
C. The excess payment over the regular rate.
D. The employee is paid for the overtime work an addition compensation
equivalent to his regular wage.
8. What is the total amount earned by an employee before deductions are
made?
A. Benefits B. Gross Income C. Net Income D. Wage
9. Tammy is paid on a per-piece basis at the rate of ₱1.20 per piece. If she
finishes 360 pieces a week, how much is her total earnings?
A. ₱432.00 B. ₱435.00 C. ₱525.00 D. ₱532.00
10. Jov receives a basic pay of ₱8 500.00 a month and a 1% commission on
her sales. She sold ₱65 000.00 for the month. Her deductions are: 4% for
SSS based on her basic monthly pay; ₱100.00 for PhilHealth, 2%; and 10%
Withholding Tax based on gross earnings. What is her net pay?
A. ₱1,090.00 B. ₱3,455.00 C. ₱5,513.00 D. ₱7,612.00

II. Identification. Identify what is being asked.

1. It refers to the earnings received by worker on a piece rate, hourly rate,
or daily rate.
2. An employee compensation given by an employer on top of the basic
salary/wage.
3. It is the difference between employee’s gross income and deductions.
4. A compensation usually quoted annually or monthly for an employee.
5. It refers to the compensation that an individual receives in exchange
for providing a good/service or through investing capital.

3
Activity 1: Solve Me!

Direction: Read the following problems carefully. Show a complete solution

on a separate sheet of paper.

1. Albert receives 30% commission on the appliances he sells. If he sells

a TV for ₱12,000, a refrigerator for ₱15,000, and a heater for ₱1600,
how much does Albert make in commission?

2. Juan makes money by commission rates. He gets 15% of everything he

sells. If Juan sold ₱230,000 worth of items this month, what is his
salary for the month?

3. Roy works at a Gadget Store. For every cash purchase of a laptop, he

gets 8.1%commission. In a particular month, he was able to sell 10
laptops costing ₱24,000 each. How much was his total commission for
such cash sales?

4. Mark makes ₱12,000 a month plus some money by commission rates.

He gets 8% of everything he sells. If Mark sold ₱60,000 worth of items
this month, what is his salary for the month?

5. Carlo sold his house for ₱8,000,000. The real-estate agent got a 5%
commission from the sales. From his commission, he has to pay BIR
tax and other obligations required for the transfer of ownership of the
property to the buyer. This expense represents 6% of his total
commission. How much net amount will he receive?

Great! You finished answering the word problems. Congratulations and keep
on learning!

4
 Discover

I. Business Applications

When you work for a salary, you receive the same amount of money each
week or month. When you work for commission, you are paid a percentage
of the total sales you complete.

Commission = Commission rate × Sales

Example 1: Joshua’s sales commission rate is 6%. What is the commission

from the sale of ₱2,630,000 worth of new car sales?

Solution:

C = 6% × ₱2,630,000

C = ₱157,800.00

Therefore, the commission is ₱157,800.00.

Example 2. A salesperson gets a commission for his sales based on the

following scale: 6% on all sales 5% on all sales between ₱50,000 and ₱100,000
4% on all sales over ₱100,000 If his total sales was ₱150,000, what is his
gross pay?

Solution: First commission = 6% (₱150,000)

= 0.06 (150,000)

= ₱9,000

Second commission = 5% (₱100,000 – ₱50,000)

= 0.05 (50,000)

= ₱2,500

Third commission = 4% (₱150,000 – ₱100,000)

= 0.04 (50,000)

= ₱2,000.

Therefore, his total commission, which serves as his gross pay, is

₱9,000 + ₱2,500 + ₱2,000 = ₱13,500.

5
Example 3. A real-estate agent receives a 3% commission of ₱300,000 for
selling a house. What was the price of the house?

Solution: ₱300,000 represents 3% of the total cost of the house; that is,
3%(house cost) = ₱300,000.

Therefore, the price of the house = ₱300,000/.03 = ₱10,000,000.

II. Simple Interest

In business, capital is very important. However, not all business owners

always have enough capital to sustain their business. More often than not,
they have to borrow money for use in the business. It is in this context that
interest plays an important role. Borrowers need to pay interest on the money
that they borrow.

Interest is a fee paid for borrowing money or other assets. The amount
borrowed is called the principal. Rate (interest rate) is the cost of using money
expressed as a percentage of the principal for a given period of time, which is
usually per year. It is generally regarded as the cost of borrowing or lending
out money or the cost of credit. Time is the term of period of the loan.

Two common types of interest are simple interest and compound interest.

Simple Interest is computed on the principal and then added to it.

Simple Interest Formula

𝑰𝑺 = 𝑷𝒓𝒕
where 𝐼𝑆 = simple interest
P = principal, or the amount invested or borrowed
r = simple interest rate
t = term or time in years

Example 1: A bank offers 0.25% annual simple interest rate for a particular
deposit. How much interest will be earned if 1 million pesos is deposited in
this savings account for 1 year?

Given: P = ₱1,000,000 I = 0.25% = 0.0025

t = 1 year Find: IS

Solution: IS = Prt

IS = (₱1,000,000) (0.0025) (1)

IS = ₱2,500

Therefore, interest earned is ₱2,500.

6
Example 2. To buy a new car Rene needs to borrow ₱800,000.00 for 3 years
at a rate of 10% per annum. What will be the total repayments?

Solution: IS = Prt
NOTE
IS = (₱800,000) (0.1) (3) per annum
means per
IS = ₱240,000 year

Total repayments = P + IS

₱800,000 + ₱240,000

Therefore, the total repayments of Rene will be ₱1,040,000.00.

Example 3: How much interest is charged when ₱50,000 is borrowed for 9

months at an annual interest rate of 10%?

Given: P = 50,000 r = 10% or 0.10

9
t =12 year = 0.75 year Find: IS

Note: When the term is expressed in months (M), it

𝑀
should be converted in years by t = 12

Solution: 𝐼𝑆 = 𝑃𝑟𝑡
9
= (₱50,000) (0.10)( 12)

= (50,000)(0.10)( 0.75)

= 3,750

Therefore, the simple interest charged is ₱3,750.

Maturity (Future) Value

𝑭 = 𝑷 + 𝑰𝒔

where F = maturity (future) value

P = principal
𝐼𝑠 = simple interest

7
Substituting 𝐼𝑠 by Prt gives F = P + Prt, = P(1 + rt)

Maturity (Future) Value

𝑭 = 𝑷(𝟏 + 𝒓𝒕)
where F = maturity (future) value
P = principal
r = interest rate
t = term/ time in years

Example 1: Find the maturity value if 1 million pesos is deposited in a bank

at an annual simple interest rate of 0.25% after (a) 1 year (b) 5 years?

Given: P = ₱1,000,000 r = 0.25% = 0.0025

Find: (a) maturity or future value F after 1 year

(b) maturity or future value F after 5 years

Solution:

(a) When t = 1, the simple interest is given by

Method 1: IS = Prt
𝐼𝑆 = (₱1,000,000) (0.0025) (1)

= ₱2, 500

The maturity or future value is given by

𝐹 = 𝑃 + 𝐼𝑠
F = ₱1,000,000 + ₱2,500

= ₱1,002,500

Method 2: To directly solve the future value F, F = P (1 + rt)

F = (₱1,000,000) (1 + 0.0025(1))

F = ₱1,002,500

Therefore, the future or maturity value after 1 year is ₱1,002,500.

8
(b) When t = 5,

Method 1: 𝐼𝑆 = 𝑃𝑟𝑡

= (₱1,000,000) (0.0025) (5)

= ₱12,500
𝐹 = 𝑃 + 𝐼𝑠
F = ₱1,000,000 + ₱12,500

= ₱1,012,500.00

Method 2: F = P(1 + rt)

= (₱1,000,000) (1 + 0.0025(5))

= 1,012,500

Therefore, the future or maturity value after 5 years is ₱1,012,500.

III. Ordinary Interest and Exact Interest

When time is expressed in days, interest could either be ordinary interest or

exact interest. For ordinary interest, one year is taken as 360 days
(approximate days in a year); hence,
𝐷
𝐼𝑂 = 𝑃 × 𝑟 ×
360
where D is the number of days or the time expressed in days.

For exact interest, one year is taken as 365 days (exact days in a year);
hence,
𝐷
𝐼𝑒 = 𝑃 × 𝑟 ×
365
𝐷 𝐷
Take note that or replaces t in our basic formula 𝑰𝑺 = 𝑷𝒓𝒕
360 365

Example 1: Compute for (a) ordinary interest and (b) exact interest on
₱1,000.00 at 90 days.

Given: P = ₱1000 r = 8%

t = 90 days Find: 𝐼𝑂 and 𝐼𝑒

9
Solutions:
𝐷
a. 𝐼𝑂 = 𝑃 × 𝑟 × 360
90
= ₱1000 × 0.08 ×
360
90
= ₱80 ×
360
₱80
=
4

𝐼𝑂 = ₱20

𝐷
b. 𝐼𝑒 = 𝑃 × 𝑟 × 365

90
= ₱1000 × 0.08 ×
365
= ₱80 × 0.2466
= ₱19.728 or ₱19.73

Take Note!

Ordinary interest is higher than exact interest. If the problem is silent,

we always solve for ordinary interest as that is the interest most
commonly used.

Example 2: Compute for 𝐼𝑂 and 𝐼𝑒 on ₱2,000.00 at 1% per month for 60 days.

Given: P = ₱2000 r = 1% per month

t = 60 days Find: 𝐼𝑂 and 𝐼𝑒

𝐷
a. 𝐼𝑂 = 𝑃 × 𝑟 × 360
60
= ₱2000 × (0.01/𝑚𝑜𝑛𝑡ℎ × 12𝑚𝑜𝑛𝑡ℎ𝑠
360
60
= ₱2000 × 0.12 ×
360
1
= ₱240 ×
6

𝐼𝑂 = ₱40

10
 𝐷
b. 𝐼𝑒 = 𝑃 × 𝑟 × 365

(1%) × 12𝑚𝑜𝑛𝑡ℎ𝑠 60𝑑𝑎𝑦𝑠

= ₱2000 × ×
𝑚𝑜𝑛𝑡ℎ 𝑦𝑒𝑎𝑟 365𝑑𝑎𝑦𝑠/𝑦𝑒𝑎𝑟
12
= ₱2000 × × .1644
100
= ₱20 × 12 × .1644
= ₱39.46

As previously stated, ordinary interest is always higher than exact

interest, hence, is ordinarily used.

Take Note!

To apply the formula, it is necessary to restate or convert r in

terms of an annual rate because the time is expressed in years (360
days).

11
 Explore

Here are some enrichment activities for you to work on to master and
strengthen the basic concepts you have learned from this lesson.

Enrichment Activity 1: Let’s Solve!

1. An appliance center agent sold a set of kitchen utensils for ₱20,000 and
got a ₱600 commission. What was the commission rate?

2. Miguel earns a commission of 10% which is ₱10,000. How much did

he sell?

3. A sales agent receives ₱12,000 a month corresponding to a sales of

₱30,000 worth of goods. Furthermore, he receives an additional 6%
commission for all sales beyond his monthly quota but not greater than
₱50,000. An additional 3% commission is for sales beyond ₱50,000. If
his sales is ₱70,000 for the month, how much is his salary for the
month?

4. Marivic is a sales agent for the High Ace Realty. She is paid based on
commission only. She is given a 5% commission on her sales. For the
current month, her sales were ₱1,035,000.00. How much would be her
commission?

5. A tutor at ABC Learning Center receives a monthly base pay of ₱8,000

corresponding to a ₱5,000 tutorial fee input to the Center. He gets a
share of 15% of all tutorial fees beyond the mandatory ₱15,000 input.
If each student he handles pays ₱6,000/month on tutorial fees and he
has five students for the month, how much share does he receive
beyond his base pay?
Enrichment Activity 2: Fill the Missing Part!
A. Complete the table below by finding the unknown

Principal (P) Rate (r) Time (t) Interest

(a) 2.5% 4 1500
36,000 (b) 1.5 4,860
250,000 0.5% (c) 275
500,000 12.5% 10 (d)

12
 B. Find the unknown principal P, rate r, time t, and interest I by completing
the table.
Principal (P) Rate (r) Time (t) Interest
2,000 5% 3 (1)
(2) 12% 5 20,000
88,000 (3) 4 8,000
500,000 9.5% (4) 285,000
1,000,000 0.5% 12 (5)

C. Complete the table by finding the unknown.

Present Value Rate (r) Time (t) Interest Maturity
(P) Value (F)
8,000 8% 6 years (6) (7)
5,000 (8) 1 month (9) 6,000
(10) 12% 5 years and 400,000
3 months

Enrichment Activity 3: Complete the following.

P r D IO Ie
₱1,250.00 5% 30
₱2,150.00 6% 90
₱5,120.00 8% 120
₱3,480.00 1% per month 60
₱8,175.00 2%/month 90
₱4,750.00 14% 240
₱4,000.00 12% 360
₱1,000.00 1
12 %/month 180
₱6,250.00 10% 180
₱1,350.00 1
3 %/month 180
2

Great job! You have understood the lesson. Here’s another fun activity to
strengthen your skills!

13
 Deepen

Activity 1: Problem Solving!

1. Find the simple interest on a loan of ₱65,000 if the loan is given at a
rate of 20% and is due in 3 years.

2. Amparo invested a certain amount at 10% simple interest per year.

After 2 years, the interest she received amounted to ₱3,000. How much
did she invest?

3. Miko borrowed ₱25,000 at 10% annual simple interest rate. How much
should he pay after 3 years and 6 months?

4. How long will 1 million pesos earn a simple interest of 200,000 at 2%

per annum?

5. How long will an amount of ₱50,000 gain a simple interest of ₱10,000

at 4% per annum?

6. What is the future value if Yana accumulated ₱1,200.00 for 2 years at

3% per quarter simple interest?

7. At what simple interest rate per annum will ₱20,000 accumulate to

₱25,000 in 3 years?

8. Emil lent ₱5,000.00 at 15% for 7 months. How much will he get at the
end of the term? How much interest did he earn?

9. How much money should you deposit in a bank so that it will

accumulate to ₱100,000 at 1% simple annual interest for 10 years?

10. Dennis invested ₱15,000 at 13% interest for 3 years. What is the
interest and maturity value?

Activity 2: Practice your skills!

1. Citibank pays 9% ordinary simple interest on a 30-day time deposit.
How much money will the depositor have at the end of the 30-day period
if he or she deposits ₱1,500.00?

2. The Villa Pawnshop charges 24% simple interest on the loan of all items
pawned to them. If Rose pawned her necklace for ₱1,200.00, how much
will she pay the pawnshop after 90 days assuming Villa Pawnshop
charges the following?
a. exact interest b. ordinary interest

14
3. Find the principal on a loan that was paid ₱1,345.00 after ordinary
interest was charged at 10% for 90 days.

4. Find the interest rate on a loan ₱1,800.00 that was paid ₱1,845.00 after
60 days from the date of loan. The interest charge was ordinary interest.

Congratulations! You did a great job!

15
 Lesson
Salaries and Wages
2

Jumpstart

Warm Up Activity!

Give at least 5 examples of professions and explain how they get paid.
Completion Accuracy Organization Conventions
Score

5 The answer is All information Content is well- No major

complete. provided is organized and easy grammatical or
accurate. to read. Points follow spelling errors. No
a logical progression. more than two minor
errors.
4 The answer is All information Content is well- No major
missing slight provided is organized and easy grammatical or
details accurate. to read. Points follow spelling errors. No
a logical progression. more than five minor
errors.
3 The answer is Most Content is organized Some major and
missing information and easy to read. minor errors that
multiple details. provided is Points follow a don’t necessarily
accurate. mostly logical impair
progression. communication.
2 Content Some Content may be Major and minor
suggests lack of information unorganized and errors significantly
preparation or provided is difficult to read. weaken quality of
comprehension. accurate. Points do not follow a communication,
solidly logical although still
progression. comprehensible.
1 Content only A small amount Content is Communication
marginally of the unorganized, seriously impaired by
related to the information is illogical, and difficult multitude of
question/prom accurate. to read. spelling/grammatical
pt. errors.
0 Content fails to None of the Content is very Multitude of major
meet the basic information poorly organized, and minor errors
requirements of provided is illogical, and difficult make answer
the task. accurate. to read. incomprehensible.

Great! You finished answering the activity! Congratulations and keep on

learning!

16
 Discover

Ways of Service Payment

I. Salary and Wage

Salary is the compensation usually quoted annually or monthly for an

employee. Wage, on the other hand, is compensation quoted in an hourly or
daily rate for an employee. Salary earners usually get paid every 15 days (bi-
monthly) while wage earners usually get paid either weekly or sometimes even
monthly, at their employer's convenience.

Examples to emphasize the difference between salary and wage.

Example 1: A tutor who is paid ₱200 per hour is earning a wage. How much
does he earn for a 10-hour week work?

(Solution: If he works for 10 hours a week, then he will be paid ₱2,000 for that
week.)

Example 2: A university assistant professor is usually given a monthly salary.

If his salary is ₱40,000 per month, how much does he get every two weeks?

(Solution: If he gets ₱40,000 per month as his salary, then he is paid ₱20,000
every two weeks.)

Example 3: A fast food service crew is paid per hour. If he is paid an average
wage of ₱77.43 per hour, how much will he get if he works for 6 hours and 6
days a week for 4 weeks?

(Solution: If he works for 6 hours a day and 6 days a week for 4 weeks, then
he earns a total of ₱11,149.92 for that month.)

NOTE

The daily or hourly wage of an employee can be computed from

his monthly salary.

Art. 103. Time of payment. Wages shall be paid at least once every
two (2) weeks or twice a month at intervals not exceeding sixteen (16) days. If
on account of force majeure or circumstances beyond the employer’s control,
payment of wages on or within the time herein provided cannot be made, the
employer shall pay the wages immediately after such force majeure or

17
circumstances have ceased. No employer shall make payment with less
frequency than once a month.

The payment of wages of employees engaged to perform a task which

cannot be completed in two (2) weeks shall be subject to the following
conditions, in the absence of a collective bargaining agreement or arbitration
award: That payments are made at intervals not exceeding sixteen (16) days,
in proportion to the amount of work completed;
 That final settlement is
made upon completion of the work.
(Art. 143, P.D. 442, also known as the Labor Code of the Philippines)

II. Income and Benefits

Income is money that an individual receives in exchange for providing a

good/service or through investing capital.

Income is a broader term than wages and salary. Wages and salaries are
income to the persons receiving it. However, for people who are not employees,
their income may not be in the form of wages or salaries. They can have
commission income if they are paid for the commission on sales they make,
rental income if they have properties they rent out, dividend income if they
are stockholders, royalties if they are authors, and other income for whatever
endeavor they engage in including profit-making businesses. A business
firm’s income is in the form of profits that the business earns.

Some sources of income:

1. Farmers, fishermen and vendors earn income by providing goods

such as crops, fish and vegetables, respectively.

2. Individuals may earn income by investing their capital in stocks,

mutual funds or bank deposits.

Example 1: Joviemel is a stockholder of the Wisdom Corporation. For the

current year, the corporation declared 10% cash dividend to
stockholders. Joviemel owns 1, 000 shares of the company’s
₱10.00 par value shares. To compute his dividend income,
Joviemel’s dividend income = No. of shares × Dividend rate = 1
000 shares × ₱10.00 par value × 10% = ₱1,000.00

Example 2: Daniel Mon is an author and his book sold 2, 500 copies for the
first semester. His book sells at ₱375 per copy. He receives a 22%
royalty from his publisher. His royalty income would be:

Daniel Mon’s royalty = 2,500 × ₱375 × 22% = ₱206,250.00

18
Benefit is employee compensation given by an employer on top of the basic
salary/wage. Note that benefits may come in the form of cash or in kind.

Examples: 1. Cash Benefits: 13th month pay, bonuses, rice subsidy,

transportation allowance

2. Non-cash benefits: SSS/GSIS, Pag-ibig, PhilHealth

III. Gross Income

The gross income of an individual refers to the total amount he/she earned
before deductions are made. Other adjustments may be payment for loans,
etc.

Example 1. A teacher who gets a basic monthly salary of ₱20,000 and a living
allowance of ₱2,000 per month has an annual gross income of
(20,000 x 12) + (2,000 x 12) = ₱264,000.

Example 2. A policeman who gets a basic salary of ₱25,000 per month, a

living allowance of ₱2,500 per month and a hazard pay of ₱12,000
per year has an annual gross income of (25,000 x 12) + (2,500 x
12) + 12,000= ₱342,000.

IV. Net Income

The net income of an individual is the difference between his/her gross

income and deductions. Example of deductions applicable are income tax,
SSS or GSIS contributions, PhilHealth and Pag-ibig contributions. The
deductions can be a fixed amount or a percentage of the basic salary.

Example 1. A teacher who gets a basic monthly salary of ₱20,000 and a living
allowance of ₱2,000 per month has an annual gross income of
(20,000 x 12) + (2,000 x 12) = ₱264,000.

Suppose this teacher has to pay every year ₱22,500 for income
tax, ₱4,500 for PhilHealth, PhP1,200 for Pag-ibig and ₱6,975.60
for SSS contributions, then his annual net income is 264,000 –
(22,500 + 4,500 + 1,200 + 6,975.60) = ₱228,824.40.

Example 2. A policeman who gets a basic salary of ₱25,000 per month, a

living allowance of ₱2,500 per month and a hazard pay of ₱12,000
per year has an annual gross income of (25,000 × 12 ) + (2,500 ×
12) + 12,000= ₱342,000.

Suppose this policeman has to pay annually ₱25,000 for income

tax, ₱4,500 for Philhealth, ₱1,200 for Pag-ibig and ₱27,000 for
GSIS contributions, then his net annual income is 342,000 –
(25,000 + 4,500 + 1,200 +27,000) = ₱284,000.

19
 Explore

Here are some enrichment activities for you to work on to master and
strengthen the basic concepts you have learned from this lesson.

Enrichment Activity 1: Problem Solving

1. A clerk earns a salary of ₱20,000 per month. Assuming that he works

8 hours a day for a 20-day work month, how much does he get per day?
per hour?

2. An employee is paid a monthly salary of ₱16,000 for working 20 days

in a month. A taxi driver earns ₱750 per day. Assuming both work 8
hours a day, who has a higher hourly wage?

3. Jenny is paid on per-piece basis at the rate of ₱2.20 per piece. If she
finishes 210 pieces a week, how much is her total earnings?

4. Linda is employed to repack and seal pepper. She is paid on the

following differential pay plan schedule:

Quantity Rate Per 100

Packs
Less than 100 ₱100.00
100 - 149 ₱105.00
150 – 199 ₱107.50
200 or more ₱110.00

For the week, Linda repacked the following quantities: Monday, 95; Tuesday,
102; Wednesday, 130; Thursday, 152; and Friday, 201. Compute her total
wage for the week.

20
Enrichment Activity 2: Find It!
A. Find the gross weekly wage of the following employees.
Employees Production Piece Rate Gross Income/Earnings
a. F.Morato 105 ₱10.30 __________________
b. A.Obidos 75 ₱12.50 __________________
c. I.Reyes 236 ₱8.15 __________________
d. J.Abad 25 ₱10.50 __________________
e. H.Lopez 6 ₱25.00 __________________

B. Find the gross earnings of each of the following employees:

Employee No. of Article Total Piece Gross

Articles Rate Earnings/
Income
M T W TH F
Aireen 26 13 22 25 30 ₱2.05
Beverly 18 28 25 19 22 ₱3.98
Catherine 9 12 15 8 10 ₱10.75
David 110 95 97 122 112 ₱0.97

Great job! You have understood the lesson. Here’s another fun
activity to strengthen your skills!

Deepen

Activity 1. Problem Solving

1. A university professor who receives a basic monthly salary of ₱80,000,
a living allowance of ₱2,000 per month, and has an investment of
₱500,000 which earns an interest of 6% per year. Suppose this
university professor has to pay also each year ₱245,880 for income tax,
₱12,000 for Philhealth, ₱1,200 for Pag-ibig and ₱86,400 for GSIS
contributions. What is his (a) gross income (b) net income?
2. A minimum wage earner in Metro Manila is paid ₱481 for an 8-hour
workday. If he works for 22 days in one month, what would be his gross
monthly income? Suppose the minimum wage earner is exempted from
paying income tax. His deductions per month are ₱100 for Pag-ibig,

21
 ₱200 for PhilHealth and ₱363.30 for SSS then what is his net monthly
income?
3. Jane receives a basic pay of ₱9,880.00 a month and a 2% commission
on her sales. She sold ₱105,000 for the month. Her deductions are: 4%
for SSS based on her basic monthly pay; ₱100.00 for the PhilHealth;
Pag-Ibig, 2%; and 10% Withholding Tax based on gross earnings.
Compute for her net pay.
4. Karen receives a basic pay of ₱8,900.00 a month and a 1% commission
on her sales. She sold ₱68,000.00 for the month. Her deductions are:
4% for SSS based on her basic monthly pay; ₱100.00 for PhilHealth;
Pag-Ibig, 2%; and 10% Withholding Tax based on gross earnings.
Computer for net pay.

Activity 2: Compute It!

1. Carissa, Erika, Marvin, and Rey are working in a factory producing

different products and are paid on a per-piece basis weekly. Following
are their production for the week:

Quantity Rate per piece

Carissa 250 ₱2.00

Erika 312 ₱0.75

Marvin 416 ₱1.25

Rey 500 ₱0.85

22
 Gauge

Activity 1: Solve each problem.

1. Alex is a straight commission salesman. He is given commission on the
basis of the following schedule:

Monthly Sales
Less than ₱50,000.00 ------------------------------------- 1%
₱50,000.00 – ₱99,999.00 --------------------------------- 2%

₱100,000.00 – ₱149,999.00 ------------------------------ 3%

₱150,000.00 – and above --------------------------------- 4%

Compute for his commission assuming his total sales is:

a. ₱75,800.00
b. ₱49,900.00
c. ₱151,200.00
d. ₱123,500.00

2. If an entrepreneur applies for a loan amounting to ₱500,000 in a bank, the

simple interest of which is ₱157,500 for 3 years, what interest rate is being
charged?

3. How long will 1 million pesos earn a simple interest of ₱300,000 at 5% per
annum?

4. How much should you invest at the simple interest is 7.5% in order to have
₱500,000 in 2 years?

5. Queen invested ₱2,800.00 for 9 months at 2% interest per month. How

much will she get upon maturity? How much did she earn?

23
Activity 2: Define Me!
Define the following:
a. salary
b. wage
c. income
d. benefits

Congratulations! You did a great job! Now answer the post-test below!

Post-test
Multiple Choice. DIRECTION: Read each item carefully then answer the
questions that follows.
1. Which is TRUE about graduated commission?
E. A commission based on percentage only.
F. A commission which varies according to how much sales is made.
G. It is based on a flat arrangement or as a percentage of the revenue
generated by a salesperson.
H. It is a commission in which a salesperson gets his basic salary and
a percentage of whatever sales he makes.
2. Which of the following is INCORRECT about straight commission?
E. Commission based on percentage only.
F. It is also called as revenue commission.
G. It is a form of payment to an agent for services rendered.
H. This is very profitable if you are selling high-ticket items.
3. Which situation illustrates a salary plus commission?
E. A person who receives only salary.
F. A person who receives only commissions.
G. A person who gets paid a salary and a % of sales.
H. A person who paid percentage (%) changes based on how much
he/she sells.
4. Shin Hye is a car sales agent. She is paid commission only at the rate of
2.5%. For the current month, she sold two cars totaling ₱1 875 000.00.
What will be her commission?
A. ₱18,630.00 B. ₱20,450.00 C. 40,875.00 D. ₱46,875.00
5. Carmela is a sales agent for the High Ace Realty. She is paid based on
commission only. She is given a 2% commission on her sales. For the
current month, her sales were ₱1 035 000.00. What is her commissions?
A.₱15,455.00 B. ₱20,700.00 C. ₱29,700.00 D. ₱30,155.00

24
6. Which is TRUE about salary?
A. It is the remuneration given an employee in exchange of his or her
services.
B. It refer to earnings received by worker on a piece rate, hourly rate,
or daily rate.
C. The benefits of employees paid on monthly or annual basis.
D. These include vacation and sick leaves, medical and hospitalization
benefits, meal and transportation allowance.
7. Which of the following sentences BEST describes wage?
A. The earnings received by workers on a piece rate, hourly rate, or daily
rate.
B. Workers are paid in proportion quantity of work he or she finishes.
C. The excess payment over the regular rate.
D. The employee is paid for the overtime work an addition compensation
equivalent to his regular wage.
8. What is the total amount earned by an employee before deductions are
made?
A. Benefits B. Gross Income C. Net Income D. Wage
9. Tammy is paid on a per-piece basis at the rate of ₱1.20 per piece. If she
finishes 360 pieces a week, how much is her total earnings?
A. ₱432.00 B. ₱435.00 C. ₱525.00 D. ₱532.00
10. Jov receives a basic pay of ₱8 500.00 a month and a 1% commission on
her sales. She sold ₱65 000.00 for the month. Her deductions are: 4% for
SSS based on her basic monthly pay; ₱100.00 for PhilHealth, 2%; and 10%
Withholding Tax based on gross earnings. What is her net pay?
A. ₱1,090.00 B. ₱3,455.00 C. ₱5,513.00 D. ₱7,612.00

II. Identification. Identify what is being asked.

1. It refers to the earnings received by worker on a piece rate, hourly rate,
or daily rate.
2. An employee compensation given by an employer on top of the basic
salary/wage.
3. It is the difference between employee’s gross income and deductions.
4. A compensation usually quoted annually or monthly for an employee.
5. It refers to the compensation that an individual receives in exchange
for providing a good/service or through investing capital.

25
References

Department of Education, (2014). K to 12 Senior High School Accountancy,

Business, and Management Strand, Curriculum Guide in Business
Mathematics. Pasig City, Philippines
Department of Education-Bureau of Learning Resources (DepEd-BLR),
(2016). General Mathematics Learner’s Material. Ground Floor Bonifacio
Building, DepEd Complex Meralco Avenue, Pasig City, Philippines 1600
Eather, Jenny (2014). A Math Dictionary Quick Reference. Retrieved from
http://www.amathsdictionaryforkids.com/qr/i/interest.html
Mariano, Norma, PhD (2017). Business Mathematics. Samploc, Manila,
Philippines: Rex Bookstore, Inc.
Unit, K. t. (2016). Teaching Guide for Senior High School Business
Mathematics. 4th Floor, Commission on Higher Education, C.P. Garcia Ave.,
Diliman, Quezon City: Commission on Higher Education.

26
 Answer Key

Pre-test

1. B 10. D
2. A
3. C II.Identification
4. D
1. Wage
5. B
2. Benefits
A
6.
3. Net income
A
7.
4. Salary
C
8.
5. Salary
A
9.
LESSON 1
Jumpstart
Activity 1: Focusing Event
1. Answer may vary
Activity 2: Solve Me!
1. Total sales = ₱12,000 + ₱15,000 + ₱1,600 = ₱28,600
Commission = ₱28,600 x 30%
= ₱28,600 x 0.3
= ₱8,580
2. Salary = 15% (₱230,000)
= 0.15 (₱230,000)
= ₱34,500
3. Total Sales = ₱24,000/laptop x 10 laptops = ₱240,000
Cash commission = ₱240,000 x 8.1%
= ₱240,000 x 0.081
= ₱19,440
4. Commission = 8% (₱60,000) = ₱4,800.
His salary for the month = ₱12,000 + ₱4,800
= ₱16,800.
5. His commission amounts to 5% (₱8,000,000) = ₱400,000. If BIR tax is 6%
of his commission, the net amount he will receives corresponds to 94% of
₱400,000 which is ₱376,000.

27
Explore
Enrichment Activity 1: Let’s Solve!
1. The commission rate is obtained from the equation 600 = r% (₱20,000).
This gives r = 3%.
2. The amount he sold is given by ₱10,000/10% = ₱100,000.
3. His first commission is 6% (₱50,000 – ₱30,000)
= 0.06 (₱20,000)
= ₱1,200.
His second commission is 3% (₱70,000 – ₱50,000)
= 0.03 (₱20,000)
= ₱600.
His salary for the month is ₱12,000 + ₱1,200 + ₱600
= ₱13,800.
4. Commission = ₱1,035,000.00 x 2% = ₱20,700
5. He contributes ₱6,000 x 5 = ₱30,000.
He gets a share of 15% (₱30,000 – ₱15,000)
= 0.15 (15,000)
= ₱2,250.
Enrichment Activity 2: Fill the missing part!
A.
𝐼𝑠
(a) The unknown principal can be obtained by P = 𝑟𝑡
1500
P= (0.025)(4)

P = ₱15,000
𝐼𝑠
(b) The unknown rate can be computed by r = 𝑃𝑡
4,860
r= (36,000)(1.5)

r = 0.09 or 9%
(c) The unknown time can be calculated by
𝐼𝑠
t= 𝑃𝑟
275
t= (250,000)(0.005)

t = 0.22 years
(d) The unknown simple interest is given by 𝐼𝑠 = Prt
𝐼𝑠 = (500,000)(0.125)(10)
𝐼𝑠 = 625,000

1
B. C.

1. ₱300 6. 300
2. ₱33,333.33 7. 11.840
3. 2.27% 8. 240%
4. 6 9. 1,000
5. 60,000 10. ₱245,398.77301
Enrichment Activity 3.
P r D IO Ie
₱1,250.00 5% 30 5.21 5.14
₱2,150.00 6% 90 32.25 31.81
₱5,120.00 8% 120 136.53 134.66
₱3,480.00 1% per month 60 69.6 68.65
₱8,175.00 2%/month 90 490.5 483.78
₱4,750.00 14% 240 443.3 437.26
₱4,000.00 12% 360 480 473.42
₱1,000.00 1
1 %/month 180 30 29.59
2
₱6,250.00 10% 180 312.50 308.22
₱1,350.00 1
32 %/month 180 121.5 119.84

Deepen
Activity 1: Problem Solving
1. ₱39,000 6. ₱1,488
2. ₱15,000 7. 8.33%
3. ₱33,750 8. F = ₱5,375; I = ₱375
4. 10years 9. ₱90.909.09
5. 5. 5 years 10. I = ₱5,850.00; ₱20,850.00
Activity 2: Practice your skills!
1. ₱1,511.25
2. a. ₱1,272.00; b. ₱1,271.01
3. ₱1,311.375
4. 15%
LESSON 2
Jumpstart
Answers may vary

2
Explore
Enrichment Activity 1
1. ₱ 125 per hour
2. Employee: 16,00020 = 800 per day; 8008=100 per hour, Taxi Driver:
7508 = 93.75 per hour. Therefore, the employee has a higher hourly
wage rate.
3. ₱462.00
4. ₱723.10
Enrichment Activity 2
A.
a. ₱1,081.50
b. ₱937.50
c. ₱1,923.40
d. ₱262.50
e. ₱150
B.

Employee No. of Article Total Piece Gross

Articles Rate Earnings/
Income
M T W TH F
Aireen 26 13 22 25 30 116 ₱2.05 ₱237.8
Beverly 18 28 25 19 22 112 ₱3.98 ₱445.76
Catherine 9 12 15 8 10 54 ₱10.75 ₱580.50
David 110 95 97 122 112 546 ₱0.97 ₱529.62

Deepen
Activity 1
1. Gross income: ₱1,014,000
Net income: ₱668,520
2. Gross income: ₱10,582
Net income: ₱ P9,918.70
3. ₱10,047.20
4. ₱8,874.4
Activity 2
1. Carissa: ₱500
Erika: ₱234
Marvin: ₱250
Rey: ₱425

3
Gauge
Activity 1
1.a. ₱1,516 2. 10.5%
b. ₱499.00 3. 6 years
c. ₱6,048.00 4. ₱434,782.61
d. ₱3,705.00 5. F = ₱2,842; I = ₱42.00
Activity 2
Answers may vary