SENIOR HIGH SCHOOL

Business Mathematics
Quarter 2 Module 1 (Week 1 & 2)
Commissions, Down Payment, Gross Balance, and
Current Increased Balance

i
At the end of this module you will also find:

References This is the list of all sources used in developing

this module.

The following are some reminders in using this module:

1. Use the module with care. Do not put unnecessary mark/s on any part of
the module. Use a separate sheet of paper in answering the exercises.
2. Don’t forget to answer What I Know before moving on to the other activities
included in this module.
3. Read the instructions carefully before doing each task.
4. Observe honesty and integrity in doing the tasks and checking your
answers.
5. Finish the task at hand before proceeding to the next.
6. Return this module to your teacher/facilitator once you are through with
it.

If you encounter any difficulty in answering the tasks in this module, do not
hesitate to consult your teacher or facilitator. They are always ready to help
you.

We hope that through this material, you will experience meaningful learning and
gain deep understanding of the relevant competencies. You can do it!

About the Module

This module was designed and written with you in mind. It is here to help you
master about Commissions, Its types, and other relevant concepts. The scope of this
module permits it to be used in many different learning situations. The language
used recognizes the diverse vocabulary levels of students. The lessons are arranged
to follow the standard sequence of the course. But the order in which you read them
can be changed to correspond with the textbook you are now using.

This module is divided into three lessons, namely:

Lesson 1 – Commissions and Its Types.
Lesson 2 –Down Payment, Gross Balance, and Current Increased Balance

After going through this module, you are expected to:

 illustrate commissions and its types;
 compute commissions on cash basis and commission on installment basis;
 compute down payment, gross balance and current increased balance; and
 solve problems involving commissions.

ii
 What I Know (Pretest)

Instruction: Choose the letter of the correct answer. Write your answers and
your solutions on a separate sheet of paper.

For items number 1 and 2, please refer to the problem below.

Odette was asked by her aunt to help her sell her slightly used iPhone 11 Pro Max. In
return, her aunt will give her 5% of the sales.

1.) What do you call the amount Odette will receive when she sells the phone?
A.Commission C.Override
B.Interest D.Quota

2.) Suppose Odette sold her Aunt’s phone for PHP55,000.00, how much will she
receive?
A.PHP 1,750 C.PHP3,750
B.PHP2,750 D.PHP4,750

3.) Some companies give their product manager and sales or marketing manager
extra payment based on the sales of the people under them. What do you call such
payment?
A. Commission C. Override
B. Interest D. Quota

4.)Lebron is a sales agent for luxury cars. He is only paid a percentage of his sales.
What type of commission does Lebron get?
A. Graduated C. Straight
B.Quota D. Salary Plus

For items number 5-7, please refer to the problem below.

Mr. Franco is a product manager who has five sales representatives

under him. His company gives him an annual salary of PHP 240, 000; a 2%
commission on his own sales; and 0.5% override of his men’s sales. In
January 2020, his sales reached PHP 525, 000, while his men made PHP
3,250,000

5.) How much was Mr. Franco’s commission for that month?
A. PHP 5, 500 C. PHP 15, 500
B. PHP 10, 500 D. PHP 20, 500

6.) How much was his override from his men’s sales?

A. PHP 12, 250 C. PHP 16, 250

B. PHP 14, 250 D. PHP 18, 250

1
7.) How much was Mr. Franco’s gross earnings for the month of January?
A. PHP 26, 750 C. PHP46, 750
B. PHP 36, 750 D. PHP 56, 750

8.) It is the initial partial payment done by the customer or borrower in purchasing
goods.
A. Cash price C. Installment
C. Down payment D. Interest

9.) Mr. Jimmy Buttler plans to buy a car worth PHP1, 250, 000 in installment basis.
How much will he need in order to pay the 20% down payment?
A. PHP50, 000 C. PHP250, 000
B. PHP 150, 000 D. PHP 350, 000

For items 10 and 11, please refer to the problem below.

Niña is a sales agent for home appliances. Her basic monthly salary is
PHP 15, 000. She also receives 3% commission if her weekly sales exceeds
the quota of PHP 10, 000. The following shows her sales for the month of
August.
Week 1 PHP 7, 500
Week 2 PHP 14, 750
Week 3 PHP 16, 500
Week 4 PHP 12, 600

10.) How much is Niña’s commission for the month of August?

A. PHP 1, 315.50 C. PHP 2, 315.50

B. PHP 1, 525.50 D. PHP 2, 525.50
11.) How much is her gross earnings for the month of August?
A. PHP 16, 315.50 C. PHP 26, 315.50
B. PHP 16, 525.50 D. PHP 26, 525.50

12.) 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. Commission C. Gross Balance
B. Down Payment D. Increased Balance

13.) 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 on time.
A. Commission C. Gross Balance
B. Down Payment D. Increased Balance

2
 For items 13-15, please refer to the problem below.

Suppose the current total amount from your purchases using credit
card is PHP 45, 750 as of the month’s cut-off date. The minimum required
payment is 8% of the total amount due. If you pay only the minimum
required payment, your bank will charge a 2.5% the next bill. Assuming you
only paid the minimum required payment and refrain from using your credit
card on any of your purchases the next month,

13.) How much is the current minimum required payment?

A. PHP 3, 224.50 C. PHP 3, 660.00

B. PHP 3, 454.50 D. PHP 3, 860.00

14.) How much penalty is added on the next bill?

A. PHP 1, 052.25 C. PHP 1, 252.25

B. PHP 1, 152.25 D. PHP 1, 352.25

15.) How much is your due amount on that month?

A. PHP 43, 142.25 C. PHP 44, 315.50

B. PHP 43, 225.25 D. PHP 44, 525.50

3
 Lesson Commissions
1

What I Need to Know

At the end of this lesson, you are expected to:
 define commission,
 illustrate the different types of commissions,
 compute commission on cash basis and commission on installment
basis, and
 solve real-life problems involving different types of commissions.

What’s In
To easily understand the concepts and master the skills in this lesson, we will
review some relevant learning that we had from the previous module. The necessary
computations that we will have in this lesson make use of the basic formula, 𝑷 = 𝑩𝑹.
We will associate this formula in computing for the commission.

Activity 1.1. Percent, Base and Rate: A recall.

Instruction. Give what is being asked for. Write your answers and your solutions on
a separate sheet of paper.

1. What percent of 50 is 20?

2. What is 25% of 100?
3. What is 30% of 1,000?
4. What is the sum of 10% of 8,000 and 5% of 10,000?
5. 180 is what percent of 900?

What’s New

Two companies offer you a sales job. Company A pays you a commission of
5% on all sales and sales usually average PHP 75, 000 a month. Company B pays a
commission of 10% on sales up to PHP 8, 000 and 15% on sales over PHP 8,000 and
sales usually average PHP 30, 000 a month. Based on the usual monthly average
sales, which company pays more?

In order to solve the problem, we need to master the skills of computing for
the commission and other related concepts.

4
 What Is It
According to Lopez-Mariano (2016), salesmen, agents, and brokers are
generally paid commissions as incentives for increasing a firm’s sales. Furthermore,
salesmen are employees of the firm either paid on a straight commission basis or on
salary plus commission basis. Agents and brokers are generally not employees of the
firm and paid commissions only. Marketing and/or product managers are generally
paid overrides on the sales of people under them.

In sales, the amount of money received by an employee or an agent for performing a

business transaction or service is called commission (Lopez et al, 2016). There are
three types of commission. These are:
1. Straight commission
2. Graduated Commission
3. Salary Plus Commission

Straight Commission
A sales agent is paid only a percentage of his/her sales.

Illustrative Example 1.1.

Tyler Hero as a home appliance sales agent works on a “commission only”
basis and receives 6% of his monthly sales. Suppose he sells PHP 150, 000 worth of
home appliances, how much is his gross earnings?

Solution:
Based on the facts stated in “What’s In” of Lesson 1 of this module, we can
derive a formula in computing for the commission. The commission corresponds to
the percentage P, the sales is the base B and the commission rate is the rate R.
Thus, from the basic formula, 𝑷𝒆𝒓𝒄𝒆𝒏𝒕𝒂𝒈𝒆 (𝑷) = 𝑩𝒂𝒔𝒆 (𝑩) × 𝑹𝒂𝒕𝒆 (𝑹) it becomes

𝑪𝒐𝒎𝒎𝒊𝒔𝒔𝒊𝒐𝒏 (𝑪) = 𝑻𝒐𝒕𝒂𝒍 𝑺𝒂𝒍𝒆𝒔(𝑺) × 𝑪𝒐𝒎𝒎𝒊𝒔𝒊𝒐𝒏 𝑹𝒂𝒕𝒆 (𝑹)

Given that Total Sales (S) = PHP 150, 000, Commission Rate (R) = 6%
𝐶𝑜𝑚𝑚𝑖𝑠𝑠𝑖𝑜𝑛 (𝐶) = 𝑃𝐻𝑃 150, 000 × 6%
𝐶𝑜𝑚𝑚𝑖𝑠𝑠𝑖𝑜𝑛 (𝐶) = 𝑷𝑯𝑷 𝟗, 𝟎𝟎𝟎

Therefore, Tyler earns PHP 9, 000 from his sales in that month.

Graduated Commission
It is applied by some companies to motivate their agents to sell more products.
The agents’ commission rate increases gradually as they also increase their sales.

Illustrative Example 1.2.

Janine is a real estate broker who receives 1.5% commission on her first
PHP 1,500,000 sales of the month and 2% commission on her sales above PHP
1,500,000. Suppose her sales in a month reaches to PHP 2,250,000, how much is
her total commission for the month?
Solution:

5
 Since Janine’s sales for that month exceeded PHP1,5000,000, her commission
is computed as follows:

𝐹𝑖𝑟𝑠𝑡 𝐶𝑜𝑚𝑚𝑖𝑠𝑠𝑖𝑜𝑛 = 𝑃𝐻𝑃1, 500, 000 × 1.5% , Computed from the expected
= 𝑃𝐻𝑃22, 500 sales/quota of PHP1,500.000

𝑆𝑒𝑐𝑜𝑛𝑑 𝐶𝑜𝑚𝑚𝑖𝑠𝑠𝑖𝑜𝑛 = (𝑃𝐻𝑃 2,250,000 − 𝑃𝐻𝑃1, 500, 000) × 2%

= 𝑃𝐻𝑃750, 000 × 2%

= 𝑃𝐻𝑃15, 000 Computed from the excess

sales.

𝑇𝑜𝑡𝑎𝑙 𝐶𝑜𝑚𝑚𝑖𝑠𝑠𝑖𝑜𝑛 = 𝑃𝐻𝑃 22,5000 + 𝑃𝐻𝑃15,000

= 𝑷𝑯𝑷 𝟑𝟕, 𝟓𝟎𝟎𝟎

Therefore, Janine earns PHP 37,500 as her commission for her sales on that month.

Salary Plus Commission

A sales employee receives a salary and a commission from his/her sales.

Illustrative Example 1.3.

Mr. Gonzales is a motorcycle sales agent who receives PHP 12,500 monthly
salary. His company also gives him a 2.5% commission from his sales beyond PHP
150,000.
a) Suppose he sells PHP 335,000 worth of motorcycle units in a month, how
much is his gross earnings?
b) If he sells only PHP 75, 000, will he earn a commission? What will be his
gross earnings?

Solution:
a) Given monthly salary = PHP 12,500, commission rate = 2.5%, and total
sales = PHP 335, 000, sales quota = PHP 150, 000

We will solve first the amount of commission he gets, that is

𝐶𝑜𝑚𝑚𝑖𝑠𝑠𝑖𝑜𝑛 (𝐶) = (𝑃𝐻𝑃 335,000 − 𝑃𝐻𝑃 150, 000) × 2.5%
𝐶𝑜𝑚𝑚𝑖𝑠𝑠𝑖𝑜𝑛 (𝐶) = 𝑃𝐻𝑃 185, 000 × 2.5%
𝐶𝑜𝑚𝑚𝑖𝑠𝑠𝑖𝑜𝑛 (𝐶) = 𝑃𝐻𝑃 4,625

To get his gross pay for the month, we add his commission to his monthly
salary, and that is

𝐺𝑟𝑜𝑠𝑠 𝑒𝑎𝑟𝑛𝑖𝑛𝑔𝑠 = 𝑆𝑎𝑙𝑎𝑟𝑦 + 𝐶𝑜𝑚𝑚𝑖𝑠𝑖𝑜𝑛

= 𝑃𝐻𝑃 12,500 + 𝑃𝐻𝑃 4,625
= 𝑷𝑯𝑷 𝟏𝟕, 𝟏𝟐𝟓

Therefore, Mr. Gonzales’ total earnings for that month is PHP 17,125.

6
 b) Given monthly salary = PHP 12,500, commission rate = 2.5%, and total
sales = PHP 75, 000, sales quota = PHP 150, 000

If Mr. Gonzales’ sales is only PHP 75, 000, then he will not earn any sales
commission. Therefore his gross earnings is only PHP 12,500.

Overrides
An amount of money which is usually given to product managers who have
sales people under them.

Illustrative Example 1.4.

Mrs. Guanzon is a product manager with three sales representatives under
her. Her company gives her a monthly salary of PHP 16,250, a commission of 4%
from all her sales and 1% override from her people’s sales. Find her gross earnings
for the month if she sells PHP 34,000 worth of products and her people sell PHP
72,000.

Solution:
Given: PHP 16,250 = monthly salary, 4% = commission rate, 1% = override
rate, PHP 34,000 = her own sales, PHP 72, 000 = her people’s sales.

Her commission is computed as follow

𝐶𝑜𝑚𝑚𝑖𝑠𝑠𝑖𝑜𝑛 (𝐶) = 𝑃𝐻𝑃 34,000 × 4%
𝐶𝑜𝑚𝑚𝑖𝑠𝑠𝑖𝑜𝑛 (𝐶) = 𝑃𝐻𝑃 1,360

Her override is given by

𝑂𝑣𝑒𝑟𝑟𝑖𝑑𝑒 (𝑂) = 𝑃𝐻𝑃 72,000 × 1%
𝑂𝑣𝑒𝑟𝑟𝑖𝑑𝑒 (𝑂) = 𝑃𝐻𝑃 720

Mrs. Guanzon’s gross earnings for the month is obtained by

𝐺𝑟𝑜𝑠𝑠 𝑒𝑎𝑟𝑛𝑖𝑛𝑔𝑠 = 𝑆𝑎𝑙𝑎𝑟𝑦 + 𝐶𝑜𝑚𝑚𝑖𝑠𝑖𝑜𝑛 + 𝑂𝑣𝑒𝑟𝑟𝑖𝑑𝑒

𝐺𝑟𝑜𝑠𝑠 𝑒𝑎𝑟𝑛𝑖𝑛𝑔𝑠 = 𝑃𝐻𝑃 16,250 + 𝑃𝐻𝑃 1,360 + 𝑃𝐻𝑃 720
𝐺𝑟𝑜𝑠𝑠 𝑒𝑎𝑟𝑛𝑖𝑛𝑔𝑠 = 𝑷𝑯𝑷 𝟏𝟖, 𝟑𝟑𝟎

Therefore, Mrs. Guanzon’s gross earnings for that month is PHP 18,330.

Commission on Sales in Installment Basis

All of the problems that we solved so far are commission based on cash. There
are instances that sales are in installment basis. The salesmen, agents and brokers
still receive commission based on their collection of the installment payment.

Illustrative Example 1.5.

Maria sold cellular phones worth PHP 36,000 which are paid in monthly
installments. She is expected to get 6% commission from them. Suppose the buyer
made a monthly installment of PHP 12,000, how much is Maria’s commission?

Solution:
Given: Total sales = PHP 36,000, Commission rate = 6%,

7
 Monthly Installment = PHP 12, 000
Since the payment is made on monthly installment, Maria will only receive a
commission based on the amount paid by the buyer per month. That is,

𝐶𝑜𝑚𝑚𝑖𝑠𝑠𝑖𝑜𝑛 (𝐶) = 𝑃𝐻𝑃 12,000 × 6%

𝐶𝑜𝑚𝑚𝑖𝑠𝑠𝑖𝑜𝑛 (𝐶) = 𝑷𝑯𝑷 𝟕𝟐𝟎

Therefore, Maria’s commission per monthly installment is PHP 720.

What’s More

Activity 1.2: Get that Commission!

A. Instruction: Analyze and solve the following problems. Write your answers
and your solutions on a separate sheet of paper.

1.) Jona gets 10% commission from reselling RTWs online. She sold PHP
25,000 worth of RTWs in the previous month. How much was her earnings
for that month?

2.) Mr. Wilson is a marketing manager at Fast Cars Company. He receives a

monthly salary of PHP 30, 000 and 1.5% commission on his sales beyond
PHP 5,000,000. Suppose Mr. Wilson sold PHP 6,200,000 worth of cars in
one month, how much is his gross earnings?

3.) Aaron earns a monthly salary of PHP 15,000 and gets 2% on his first
PHP 100,000 sales, and increases his commission to 4% for all his sales
beyond PHP 100,000. How much would be his total earnings if he sold PHP
188,000 worth of products?

4.) Mercy had been offered two jobs from two different companies. Company A
offered her 8.5% commission on all her sales, while company B offered 2.2%
commission with a monthly salary of PHP 9,500. Suppose she is guaranteed
a monthly average sale of PHP 120,000,

a. how much is her gross pay in Company A? How about in Company B?

b. Which company is likely to give her a better gross earnings?

8
 5.) Nana is a product Manager at MLB Home Appliance. She earns a salary of
PHP 5,500. She is given commission of 2.5% on her own sales and an override
of 0.5% on her men’s sales. Suppose Nana made PHP 56,000 total sales and
her men tallied PHP 224,800 total sales, how much is her gross earnings?

What I Need to Remember

Commission is any amount of money earned from making sales.

Commission can be computed using the formula,

𝑪𝒐𝒎𝒎𝒊𝒔𝒔𝒊𝒐𝒏 (𝑪) = 𝑻𝒐𝒕𝒂𝒍 𝒔𝒂𝒍𝒆𝒔 (𝑺) × 𝑹𝒂𝒕𝒆 𝒐𝒇 𝑪𝒐𝒎𝒎𝒊𝒔𝒔𝒊𝒐𝒏 (𝑹)

There are three types of commission:

1. Straight Commission
2. Graduated Commission
3. Salary Plus Commission

Override is commission earned by a product and/or marketing manager based on the

sales made by the people under them.

Commissions based on installments are computed depending on the amount paid by

the buyer or amount collected by the agent.

Lesson Down Payment, Gross Balance, and

2 Current Increased Balance

What I Need to Know

At the end of this lesson, you are expected to:
 define down payment, gross balance and current increased balance
and
 compute down payment, gross balance and current increased
balance.
 solve problems involving down payment, gross balance and current
increased balance.

9
 What’s In
In this lesson, you will still need to apply the concept of Percent, Base
and Rate.
Activity 2.1.Percent, Base and Rate: A recall.
Instruction. Solve the following problems. Write your answers and your
solutions on a separate sheet of paper.
1. In a class with 50 students, 40% are males. How many males and females are
there in the class?
2. Ana receives 130% of her daily wage whenever she works on a special non-
working holiday. If her daily wage is PHP 450, how much will she earn working
on a special non-working holiday?

What’s New

Purchasing of products/goods are not all the time made through cash.
It is very common nowadays. Those purchases are made possible through
credit. Most of the buyers today are lured into making a purchase through
credit charges in monthly payments called installments. Purchasing big items
such as car or a house and lot not through cash usually requires down
payment. Furthermore, failure to pay the remaining balance in the scheduled
payment periods constitutes a penalty/interest.

What Is It
Down payment
It is the initial payment done by the consumer or borrower in
purchasing goods with an agreement that the rest are to be paid on a period
of time. It is usually a percent of the purchase price of the item.

𝑫𝒐𝒘𝒏 𝑷𝒂𝒚𝒎𝒆𝒏𝒕 = 𝑷𝒖𝒓𝒄𝒉𝒂𝒄𝒆 𝑷𝒓𝒊𝒄𝒆 × 𝑫𝒐𝒘𝒏 𝑷𝒂𝒚𝒎𝒆𝒏𝒕 𝑹𝒂𝒕𝒆

Illustrative Example 2.1

Suppose a certain car unit is priced at PHP 1,200,000 and can be
purchased through installment with 20% down payment, how much should
be paid initially to purchase the car?

Solution
Given: Purchase Price = PHP 1, 200, 000 and Down Payment Rate = 20%

𝐷𝑜𝑤𝑛 𝑃𝑎𝑦𝑚𝑒𝑛𝑡 = 𝑃𝐻𝑃 1,200,000 × 20%

𝐷𝑜𝑤𝑛 𝑃𝑎𝑦𝑚𝑒𝑛𝑡 = 𝑷𝑯𝑷 𝟐𝟒𝟎, 𝟎𝟎𝟎

Therefore, the initial payment is PHP 240,000.

10
 Book Balance/Gross Balance
It is the total amount of money a bank has on deposit before adjusting
for uncleared checks or deposits, as well as reserve requirements.

Illustrative Example 2.2

A check amounting to PHP 10,000 that has been deposited today may
not be withdrawn the next day because it has not been cleared yet. If your
passbook currently has PHP 50,000, you may not be able to withdraw the
whole amount yet because your gross balance is only PHP 40,000 since your
check has not been cleared yet.

Current Increased Balance

This may refer 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 on time.

𝑪𝒖𝒓𝒓𝒆𝒏𝒕 𝑰𝒏𝒄𝒓𝒆𝒂𝒔𝒆𝒅 𝑩𝒂𝒍𝒂𝒏𝒄𝒆 = 𝑹𝒆𝒎𝒂𝒊𝒏𝒊𝒏𝒈 𝑩𝒂𝒍𝒂𝒏𝒄𝒆 + 𝑷𝒆𝒏𝒂𝒍𝒕𝒚/𝑰𝒏𝒕𝒆𝒓𝒆𝒔𝒕

Illustrative Example 2.3

As of this month’s cut-off date, the current total amount due from your
purchases using your credit card is PHP 36,545.50. The minimum required
payment is 10% of the total amount due. If you only pay the minimum
required payment, a charge of 2.5% of the remaining balance will be added to
the next bill. Assuming you refrain from using your credit card on any of your
purchases and you only paid for the minimum payment, what will be your
next bill?

Solution:
Given: Current total amount due = PHP 36, 545.50, Minimum Required
Payment Rate = 10%, Penalty Rate = 2.5%

Current minimum required payment

= (𝐶𝑢𝑟𝑟𝑒𝑛𝑡 𝑡𝑜𝑡𝑎𝑙 𝑎𝑚𝑜𝑢𝑛𝑡 𝑑𝑢𝑒) × (𝑀𝑖𝑛𝑖𝑚𝑢𝑚 𝑟𝑒𝑞𝑢𝑖𝑟𝑒𝑑 𝑝𝑎𝑦𝑚𝑒𝑛𝑡 𝑟𝑎𝑡𝑒)
= 𝑃𝐻𝑃 36,545.50)10%
= 𝑷𝑯𝑷 𝟑, 𝟔𝟓𝟒. 𝟓𝟓

Remaining Balance
= 𝐶𝑢𝑟𝑟𝑒𝑛𝑡 𝑡𝑜𝑡𝑎𝑙 𝑎𝑚𝑜𝑢𝑛𝑡 𝑑𝑢𝑒 – 𝐶𝑢𝑟𝑟𝑒𝑛𝑡 𝑚𝑖𝑛𝑖𝑚𝑢𝑚 𝑝𝑎𝑦𝑚𝑒𝑛𝑡
= 𝑃𝐻𝑃 36,545.50 – 𝑃𝐻𝑃 3,654.55
= 𝑷𝑯𝑷 𝟑𝟐, 𝟖𝟗𝟎. 𝟗𝟓

Penalty/Charge
= (𝑃𝑒𝑛𝑎𝑙𝑡𝑦 𝑟𝑎𝑡𝑒) × (𝑅𝑒𝑚𝑎𝑖𝑛𝑖𝑛𝑔 𝐵𝑎𝑙𝑎𝑛𝑐𝑒)
= 2.5% (𝑃𝐻𝑃 32,890.95)
= 𝑷𝑯𝑷 𝟖𝟐𝟐. 𝟐𝟕

Your next bill would be the remaining balance plus the penalty/charge. That is, PHP
32,890.95 + PHP 822.27 = PHP 33,713.22

Therefore, your amount due next month is PHP 33,713.22.

11
 What’s More
Activity 2.2: Down to the balance!

Instruction: Analyze and solve the following problems. Write your answers
and your solutions on a separate sheet of paper.

1.) Mrs. Agata plans to purchase a house and lot worth PHP 3,200,000.
She needs to pay 25% as the down payment and the rest will be paid
in monthly installments through bank financing. How much is the
down payment?

2.) Your current total amount from your purchases using credit card is
PHP 22, 500 as of the month’s cut-off date. The minimum required
payment is 5% of the total amount due. If you pay only the minimum
required payment, your bank will charge 2% of the remaining balance
the next bill. Assuming you only paid the minimum required payment
and refrain from using your credit card on any of your purchases the
next month, solve for the following:

a. current minimum required payment

b. remaining balance
c. penalty
d. current increased balance/amount due the next bill.

What I Need to Remember

Down Payment is a certain percent of the purchase price as an initial payment in

purchasing goods.

𝐷𝑜𝑤𝑛 𝑃𝑎𝑦𝑚𝑒𝑛𝑡 = 𝑃𝑢𝑟𝑐ℎ𝑎𝑠𝑒 𝑃𝑟𝑖𝑐𝑒 × 𝐷𝑜𝑤𝑛 𝑃𝑎𝑦𝑚𝑒𝑛𝑡 𝑅𝑎𝑡𝑒

Gross Balance/Book Balance is the actual amount of money on bank before adjusting
for uncleared checks or deposits.

Current Increased Balance is the unpaid balance plus the penalties.

𝐶𝑢𝑟𝑟𝑒𝑛𝑡 𝐼𝑛𝑐𝑟𝑒𝑎𝑠𝑒𝑑 𝐵𝑎𝑙𝑎𝑛𝑐𝑒 = 𝑅𝑒𝑚𝑎𝑖𝑛𝑖𝑛𝑔 𝐵𝑎𝑙𝑎𝑛𝑐𝑒 + 𝑃𝑒𝑛𝑎𝑙𝑡𝑦

12
 Assessment (Posttest)

Instruction: Choose the letter of the correct answer. Write your answers and
your solutions on a separate sheet of paper.

For items 1 and 2, please refer to the problem below.

Benedetta was asked by her aunt to help her sell her brand new Oppo Rheno 3 Pro phone. In
return, her aunt will give her 8% of the sales.

1.) What do you call the amount Benedetta will receive when she sells the phone?
A. Commission C. Override
B. Interest D. Quota

2.) Suppose Benedetta sold her Aunt’s phone for PHP 24,500.00, how much will she
receive?
A. PHP 1, 960 C. PHP 3, 960
B. PHP 2, 960 D. PHP 4, 960

3.) Some companies give their product manager and sales or marketing manager
extra payment based on the sales of the people under them. What do you call such
payment?
A. Commission C. Override
B. Interest D. Quota

4.) Dwayne is a sales agent for luxury cars. He is only paid a percentage of his sales.
What type of commission does Dwayne get?
A. Graduated C. Straight
B. Quota D. Salary Plus

For items 5-7, please refer to the problem below.

Mr. Akai is a product manager who has five sales representatives under him.
His company gives him an annual salary of PHP 120,000; a 4% commission
on his own sales; and 2% override on his men’s sales. In the Month of
January 2020, his sales reached PHP 125,000, while his men made PHP
375,000.

5.) How much was Mr. Akai’s commission for that month?
A. PHP 3,500 C. PHP 7,500
B. PHP 5,000 D. PHP 9,000

6.) How much was his override from his men’s sales?
A. PHP 3,500 C. PHP 7,500
B. PHP 5,000 D. PHP 9,000

13
7.) How much was Mr. Akai’s gross earnings for the month of January?
A. PHP 22,500 C. PHP 32,500
B. PHP 25,500 D. PHP 35,500

8.) It is the initial partial payment done by the customer or borrower in purchasing
goods.
A. Cash price C. Installment
C. Down payment D. Interest

9.) Mr. Roger plans to buy a car worth PHP 1,800,000 in installment basis. How
much will he need in order to pay the 20% down payment?
A. PHP 120 000 C. PHP 240,000
B. PHP 180,000 D. PHP 360,000

For items 10 and 11, please refer to the problem below.

Eudora is a sales agent for home appliances. Her basic monthly salary
is PHP 12,500. She also receives 5% commission if her weekly sales exceeds
the quota of PHP 10,000. The following shows her sales for the month of
August.
Week 1 PHP 8,800
Week 2 PHP 20,500
Week 3 PHP 18,200
Week 4 PHP 24,600

10.) How much is Eudora’s commission for the month of August?

A. PHP 1,865 C. PHP 2,665

B. PHP 2,165 D. PHP 3,165
11.) How much is her gross earnings for the month of August?
A. PHP 13, 665 C. PHP 15,665
B. PHP 14,665 D. PHP 16,665

12.) 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. Commission C. Gross Balance
B. Down Payment D. Increased Balance

14
 For items 13 -15, please refer to the problem below.

The current total amount from your purchases using credit card is PHP 22,500
as of the month’s cut-off date. The minimum required payment is 10% of the
total amount due. If you pay only the minimum required payment, your bank
will charge 3% the next bill. Assuming you only paid the minimum required
payment and refrain from using your credit card on any of your purchases the
next month,

13.) How much is the current minimum required payment?

A. PHP 1,250 C. PHP 3,250

B. PHP 2,250 D. PHP 4,250

14.) How much penalty is added on the next bill?

A. PHP 607.50 C. PHP 807.50

B. PHP 707.50 D. PHP 907.50

15.) How much is your due amount on that month?

A. PHP 20,857.50 C. PHP 21,057.50

B. PHP 20,957.50 D. PHP 21,157.50

15
References

Text Book
Mariano, N.L.Business Mathematics. Manila, Philippines. Rex Book Store,
Inc. 2016. pp. 177 – 180.

Lopez, B.R., Lundag, L.M., and Dagal, K.P. Business Math Text Book. Quezon
City, Philippines. Vibal Group, Inc. 2016. pp. 112-117

Websites
“Gross Balance”. The Free Dictionary by Farflex.Retrived from
thefreedictionary.com on November 24, 2020.

“Down payment, Gross Balance, and Current Increased Balance”. Retrieved

from jacs.weebly.com on November 24, 2020.

Congratulations!
You are now ready for the next module. Always remember the following:

1. Make sure every answer sheet has your

 Name
 Grade and Section
 Title of the Activity or Activity No.
2. Follow the date of submission of answer sheets as agreed with your
teacher.
3. Keep the modules with you AND return them at the end of the school
year or whenever face-to-face interaction is permitted.

17