B.

Commission on Installment Basis

Patrick, Rico, and Mike work in a home appliance company. They were able to sell items
in installment basis all payable in six months. Patrick sold 3 air-conditioned units worth Php15,000
each. Rico sold 6 washing machine units worth Php9,000 each. Mike sold 4 refrigerators worth
Php12,000 each. On the first month, all of them received a 6% commission for every item with
their commission decreasing by 0.5% every month thereafter and computed on the outstanding
balance for the month.
1. Compute the total amount of commission of Patrick, Rico, and Mike for each item.
2. How much is the total amount of commission of Patrick, Rico, and Mike in all the items they
have sold?
3. Who has the highest total amount of commission?

1.
Patrick’s total amount of commission:

The monthly payment for each air-conditioned unit is 15,000 ÷ 6 = 2,500.

Month Outstanding Balance Commission Amount of
Rate Commission
First 15,000 6% 15,000 × 0.06 = 900
Second 12,500 5.5% 12,500 × 0.055 = 687.5
Third 10,000 5% 10,000 × 0.05 = 500
Fourth 7,500 4.5% 7,500 × 0.045 = 337.5
Fifth 5,000 4% 5,000 × 0.04 = 200
Sixth 2,500 3.5% 2,500 × 0.035 = 87.5
Total Commission per air-conditioned unit ₱2,712.50

Rico’s total amount of commission:

The monthly payment for washing machine is 9,000 ÷ 6 = 1,500.

Month Outstanding Balance Commission Amount of
Rate Commission
First 9,000 6% 9,000 × 0.06 = 540
Second 7,500 5.5% 7,500 × 0.055 = 412.5
Third 6,000 5% 6,000 × 0.05 = 300
Fourth 4,500 4.5% 4,500 × 0.045 = 202.5
Fifth 3,000 4% 3,000 × 0.04 = 120
Sixth 1,500 3.5% 1,500 × 0.035 =52.5
Total Commission per washing machine ₱1,627.50
 Mike’s total amount of commission:

The monthly payment for refrigerator is 12,000 ÷ 6 = 2,000.

Month Outstanding Balance Commission Amount of
Rate Commission
First 12,000 6% 12,000× 0.06 = 720
Second 10,000 5.5% 10,000× 0.055 = 550
Third 8,000 5% 8,000× 0.05 = 400
Fourth 6,000 4.5% 6,000× 0.045 = 270
Fifth 4,000 4% 4,000× 0.04 = 160
Sixth 2,000 3.5% 2,000× 0.035 = 70
Total Commission per refrigerator ₱2,170.00

2.
❖ The total commission of Patrick for 3 air-conditioned units is 2,712.50 × 3 = Php8,137.50.
❖ The total commission of Rico for 6 washing machines is 1,627.50 × 6 = Php9,765.00.
❖ The total commission of Mike for 4 refrigerators is 2,170.00 × 4 = Php8,680.00.

3.
❖ Therefore, Rico has the highest total amount of commission.