Grade: ___11__

Quarter: __2nd___

At the end of the lesson the students are expected to:

1.      Illustrate business and consumer loan.

Learning Objectives 2.      Differentiate business and consumer loan.

3.      Cite examples of consumer and business loan.

4.      Relate business and consumer loan in real life situation.

Learning Competencies Illustrates business and consumer loan

Lesson/Subject Matter Business and Consumer Loans

References Learner’s Materials Mathematics of Investment 2012 Edition C. J.Andrada,etal.,p.187,193 Co

Used General Mathematics 135, http./smallbsiness.chron.com/difference-bet

LEARNING TASKS
1.Daily Routine
 2. Preparatory Activity

PREPARATORY/PRIMING
Tell something about the given picture.

Do you think they can get those things they dream to have in the future?

How? Can you identify some ways on how they can achieve those dream

Classify whether the following is being used in business loan or consum

loan.

ACTIVITY
ACTIVITY

Busines
s Loans

Guide Questions:

1.      Based on the activity, how did you classify the given above
loans?

2.      Differentiate business loans and consumer loans.

3.      Enumerate consumer loans you know.

ANALYSIS
ANALYSIS
4.      What have you noticed with the given pictures that consid
How do they common? Give some other banks do you know th
purposes.

5.      Can you cite some examples, encounter or personal experi

consumer’s loans?

BUSINESS LOANS VS. CONSUMER LOAN

Consumer loans are loans usually dealing with large purchase items on
out of want or desire.
Examples of consumer loans can be car, boat, timeshare, jewelry loans,
we don’t necessarily need, but we want to have.

Different Types of Consumer’s Loan

§ Fixed-rate loans –These loans keep the same interest rate througho
period. As a result, in most cases the interest rates are a bit higher, as t
future changing market rates.
§ Installment loans – These loans are those that are paid off during a
During each payment period, a portion of interest and principal is paid
more and more of the principal amount off. Most likely a loan on your
installment loan.
 § Single-payment loans – These terms are short term loans (usually u
referred to as Balloon loans. They can also be known as Bridge Loan
paid off all during one period, hence the balloon payment. Many times
loan until better financing can be found.

§ Unsecured loans – These are loans that do not require any collatera
reserved for those with a special expertise or with a high credit score.
unsecured loans can be very, very high.

ABSTRACTION
ABSTRACTION

§ Secured loans – These are loans that are backed up by a large assets
performance on the loan. A home equity loan is an example of a secure
used as collateral. If you refused to pay the loan, the lender is then ent
result for not paying the rest of the loan. Interest rates are usually qui
§ Convertible loans – These loans incorporate the changing of the str
For example you may have the first five years with a fixed interest rate
changing to a variable interest rate, or vice versa.

§ Variable-rate loans – These are loans in which the interest rates are
moving index that the loan uses as a benchmark, such as prime or the
have caps or ceilings on how high they can move in a given period.
Business Loans are loans or debt that the company is obligated to re
and conditions.

While lending companies and cooperatives are more than willing to le
practically live to provide capital for enterprises big and small. Here a
consider approaching for loans:

ü  BDO 

ü  BPI Family Savings Bank (BPI Family’s Ka-Negosyo Loans

ü  Land Bank 
ü  Plantersbank  
ü  PSBank   

Identify whether the following problems involved business loans or con

 1.      The buyer of a house will pay Php 75,000 cash and Php 10
months for 15 years. Consumer Loan

2.      For Pag-ibig fund housing loan, a member paid cash and a

APPLICATION 000 for housing loan on which he agrees to pay P4, 470 throug
for 30 years. Consumer Loan
3.      The Villamor Construction firm borrows Php 450, 000 as
at 9 % compounded monthly, and agrees to discharge the loan
payments at the beginning of each month for 5 years with the
of the 4th year. Business Loan

4.      Mrs. Guno borrowed Php 125,000 in a multipurpose Loan

contract that the amount is payable quarterly in 2 years at 5 %

Business Loan
 5.      Mrs. Castro bought a computer set of 32,000 to be paid in
every 3 months for 1 year. If the interest is 8% compounded qu

Write T if the statement is true otherwise write F.

__________ 1. Business Loans are loans or debt that the company is ob

loan’s terms and conditions. (T)

__________ 2. Pag-Ibig is one of the government agenci

business loans. (F)

ASSESSMENT

__________ 3. A home equity loan is an example of a secured loan. (T)

 __________ 4. Jewelry is an example consumer loan. (T)

__________ 5. Both business loans and consumer loans usu

otherwise known as assets, to secure the loan. (T)

Journal Writing:

ASSIGNMENT
Why do consumer consider credit card in purchasing loans for a certain

No. of Learners with Mastery Level

No. Of Learner Needing

Reinforcement
No. of Learners Needing Remediation

       
Prepared by:
MS. DIANA F. MERCADO
 Subject Area:_GENERAL_MATHEMATICS-Business Math

At the end of the lesson the students are expected to:

1.      Illustrate business and consumer loan.

2.      Differentiate business and consumer loan.

3.      Cite examples of consumer and business loan.

4.      Relate business and consumer loan in real life situation.

Illustrates business and consumer loan

Business and Consumer Loans

Mathematics of Investment 2012 Edition C. J.Andrada,etal.,p.187,193 Conceptual Math and Beyond

General Mathematics 135, http./smallbsiness.chron.com/difference-between-business-loan-consumer

LEARNING TASKS
1.Daily Routine
2. Preparatory Activity

Tell something about the given picture.

Do you think they can get those things they dream to have in the future?

How? Can you identify some ways on how they can achieve those dreams?

Classify whether the following is being used in business loan or consumer

loan.
 Consumer Loans

Guide Questions:

1.      Based on the activity, how did you classify the given above as business or consumer
loans?

2.      Differentiate business loans and consumer loans.

3.      Enumerate consumer loans you know.

 4.      What have you noticed with the given pictures that consider or offer business loans?
How do they common? Give some other banks do you know that offer loans for business
purposes.

5.      Can you cite some examples, encounter or personal experience regarding business and
consumer’s loans?

BUSINESS LOANS VS. CONSUMER LOANS

Consumer loans are loans usually dealing with large purchase items on goods that are usually bought
out of want or desire.
Examples of consumer loans can be car, boat, timeshare, jewelry loans, etc. They usually are items that
we don’t necessarily need, but we want to have.

Different Types of Consumer’s Loan

§ Fixed-rate loans –These loans keep the same interest rate throughout the duration of the loan
period. As a result, in most cases the interest rates are a bit higher, as to protect the lender from
future changing market rates.
§ Installment loans – These loans are those that are paid off during a set timetable, usually monthly.
During each payment period, a portion of interest and principal is paid off. Every new month pays
more and more of the principal amount off. Most likely a loan on your house or car is your standard
installment loan.
§ Single-payment loans – These terms are short term loans (usually under a year) that are usually
referred to as Balloon loans. They can also be known as Bridge Loans. Usually these balances are
paid off all during one period, hence the balloon payment. Many times these are used as a temporary
loan until better financing can be found.

§ Unsecured loans – These are loans that do not require any collateral. These loans are usually
reserved for those with a special expertise or with a high credit score. As a result, interest rates for
unsecured loans can be very, very high.
§ Secured loans – These are loans that are backed up by a large assets as collateral in case of non
performance on the loan. A home equity loan is an example of a secured loan as your house would be
used as collateral. If you refused to pay the loan, the lender is then entitled to take your house as a
result for not paying the rest of the loan. Interest rates are usually quite good for these loans.
§ Convertible loans – These loans incorporate the changing of the structure of the interest rate type.
For example you may have the first five years with a fixed interest rate, with the last five years
changing to a variable interest rate, or vice versa.

§ Variable-rate loans – These are loans in which the interest rates are subject to move based on a
moving index that the loan uses as a benchmark, such as prime or the Treasury Bill. These usually
have caps or ceilings on how high they can move in a given period.
Business Loans are loans or debt that the company is obligated to repay according the loan’s terms
and conditions.

While lending companies and cooperatives are more than willing to lend to good businesses,banks 
practically live to provide capital for enterprises big and small. Here are five banks you should 
consider approaching for loans:

ü  BDO 

ü  BPI Family Savings Bank (BPI Family’s Ka-Negosyo Loans) 

ü  Land Bank 
ü  Plantersbank  
ü  PSBank   

Identify whether the following problems involved business loans or consumer’s loan.
1.      The buyer of a house will pay Php 75,000 cash and Php 10,000 at the end of every 3
months for 15 years. Consumer Loan

2.      For Pag-ibig fund housing loan, a member paid cash and applied the balance of Php 678
000 for housing loan on which he agrees to pay P4, 470 through monthly salary deduction
for 30 years. Consumer Loan
3.      The Villamor Construction firm borrows Php 450, 000 as additional capital with interest
at 9 % compounded monthly, and agrees to discharge the loan by a sequence of equal
payments at the beginning of each month for 5 years with the first payment at the beginning
of the 4th year. Business Loan

4.      Mrs. Guno borrowed Php 125,000 in a multipurpose Loan company stipulated in a

contract that the amount is payable quarterly in 2 years at 5 % compounded quarterly.

Business Loan
 5.      Mrs. Castro bought a computer set of 32,000 to be paid in equal payments at the end of
every 3 months for 1 year. If the interest is 8% compounded quarterly. Consumer Loans

Write T if the statement is true otherwise write F.

__________ 1. Business Loans are loans or debt that the company is obligated to repay according the
loan’s terms and conditions. (T)

__________ 2. Pag-Ibig is one of the government agencies in the Philippines offers

business loans. (F)

__________ 3. A home equity loan is an example of a secured loan. (T)

__________ 4. Jewelry is an example consumer loan. (T)

__________ 5. Both business loans and consumer loans usually require collateral,
otherwise known as assets, to secure the loan. (T)

Journal Writing:

Why do consumer consider credit card in purchasing loans for a certain product/item?
ANA F. MERCADO
Date: _Week 6-Day 1
 DAILY INSTRUCTIONAL PLAN

Grade:___ELEVEN____ Subject Area: ___GENERAL MATHEMATICS___ Date: _________________

STANDARDS
CONTENT: The learners demonstrates understanding of the basic concept of business and 
consumer loans.
PERFORMANCE: The learners are able to decide wisely on the appropriateness of business or 
consumer loanand its proper utilization.
LEARNING COMPETENCIES
●Distinguishes between business and consumer loans.
ASSESSMENT PLAN
Pre- Assessment
Formative Assessment See Quiz Notebook
Summative Assessment
Student's Self Assessment

Learning Objectives Students are expected to :

1. Define amortization and mortgage.
2. Compute for the amortization and mortgage.
3. Construct your own amortization schedule.
4. Apply knowledge learned about amortization and mortgage in real life situation.
Lesson/Subject Matter Amortization and Mortgage
References Learner's www.google .com
Materials Used
LEARNING TASKS
PREPARATORY/PRIMING Complete the table below by computing the unknown component of simple 
interest.
No. P r t I F
1 P10 000 5% 3 years P1 500 P11 500
2 P5 000 6.50% 6 months P162.50 P5 162.50
3 P25 000 4% 2 years P2 000 P27 000
ACTIVITY Prepare a partial loan amortization schedule for the first five months of the 
mortgage loan shown in the given table below.
Annual % rate: 8% Term: 30 years
Amount of Mortgage: P100 000 Down payment: P20 000
No. of Monthly Payments: 360 Sale Price: P120 000
Monthly Payment: P733.76
Payment Interest Payment Principal Balance of Loan
Number Payment
1 P 666.66 P67.10 P99 932.90
2 P666.22 P67.54 P99 865.36
3 P665.77 P67.99 P99 797.37
4 P665.32 P68.44 P99 728.92
5 P664.86 P68.90 P99 660.02
ANALYSIS ● Based on the activity, how do you compute the amount of mortgage? What formula
did you use?
● How did you compute for the monthly payment?
● After 5 years, you decided to pay an extra amount of P100 to your regular payment,
what do you think would be the effect to your loan?
ABSTRACTION Amortization - is a form of annuity where the original amount of debt or loan is the 
                        present value of annuity.
                       - all liabilities as to principal and interest are discharged by a sequence of
                        equal payments due at the end of equal interval of time.
Mortgage - is a long term loan for the purpose of buying a home.
Amount of Mortgage - is the difference between the sale price and the downpayment.
Types of Mortgage
         Fixed - rate Mortgage - have the same monthly payment during the entire time 
                                          of the loan.
Loan payment Formula for Installment Loans
PMT =_________P (r/n)________
1- (1 + r/n)ˉᵑᵗ
where       P = amount of mortgage
                   r = fixed rate
                  n = number of payment per year
                  t = mortgage time
         Variable - rate Mortgage - also known as adjustable - rate mortgage (ARM)
                                         - have payment amount that change from time to time 
                                           depending on changes in the interest rate.

Loan Amortization Schedule - a document showing important information about the
                         status of the mortgage.
APPLICATION Complete the missing value in the given partial amortization schedule below.
Annual % rate: 6% Term: 20 years
Amount of Mortgage: P240 000 Down payment: P10 000
No. of Monthly Payments: 240 Sale Price: P250 000
Monthly Payment: P1719.43
Payment Interest Payment Principal Balance of Loan
Number Payment
1 P1200.00 P519.43 P239 480.57
2 P1 197.40 P522.03 P238 958.54
3 P1 194.79 P524.64 P238 433.90
4 P1 192.17 P527.26 P237 906.64
5 P1 189.53 P529.90 P237 376.74
ASSESSMENT TRUE or FALSE
Write T if the statement is correct and F if it is wrong.
1. An amortized payment is one that is designed to pay interest on outstanding principal 
while simultaneously reducing the principal over the course of the loan.
2.A mortgage whose periodic payment is subject to change over time is called 
variable rate mortgage.
3. A mortgage is a tabular listing that shows the size of the periodic payment, the 
divisionof the payment between principal and interest, and the amount still owed.
4. Amount of mortgage is determined by the sum of the sale price and the downpayment.
5. Fixed rate mortgage is also known as adjustable rate mortgage.
ASSIGNMENT Solve the given problem.
1. What is the monthly payment on a mortgage of P12 000 with annual interest rate 
of 5.5% that runs for 10 years. Costruct an amortization schedule.
No. of Learners with Mastery
Level
No. of Learners Needing
Reinforcement
No. of Learners Needing
Remediation
 Date: Week No. 6
DIP # Day 3
ASSESSMENT PLAN
FORMATIVE ASSESSMENT Refer to the daily instructional plan.
1.       Find the periodic payment and final payment of an amortization.

2.       Solve problems involving amortization.
LEARNING OBJECTIVES
3.       Value accumulated knowledge as means of new understanding.

4.       Participate actively in class activities.

LESSON/SUBJECT MATTER Solving Problems involving Amortization 

REFERENCES and Contemporary Business Mathematics for Colleges pp 278-283

LEARNERS MATERIAL
USED
Mathematics of Investment pp 115-118
Mathematics of Investment pp 83-93
LEARNING TASK
PREPARATION/ A.      Daily Routine
PRIMING ACTIVITY B.      Compute the amortization schedule given the following:
A= ₱ 4,000                t = 1 year and 6 months
r= 5%                        m = quarterly
Unpaid  Interest  Periodic 
Period Balance Paid Payment
1      ₱ 4,000       ₱ 50   ₱ 696.14
2 3353.86 41.92 696.14
3 2699.64 33.75 696.14
4 2037.25 25.47 696.14
5 1366.58 17.08 696.14
6 687.52 8.59 696.14
Total 176.81 4,176.84

A debt of ₱ 30,000 with interest at 3% compounded monthly will be discharged; 
interest included, by payments of ₱ 5,000 at the end of each three months for as 
ACTIVITY long as it is necessary.

a.      Find the periodic payment.
b.      Construct an amortization schedule.
1.      How did you find the activity?
2.      How did you compute the periodic payment for the debt?

3.      How did you come up with the amortization schedule?
ANALYSIS
ANALYSIS
4.      What mathematical principles did you apply in order to solve the 
given problem?

5.      Cite examples on how we apply the concepts of amortization and 
mortgage in solving real life problems.

Amortization is the gradual extinguishment of any amount over a period of time, 
that is, the extinction of a debt, principal and interest by means of a sequence of 
equal  periodic  payments  or  installment  payments  due  at  the  end  of  equal 
intervals of time. Usually, the equal payments form an annuity.

A= R
ABSTRACTION               wherein:
                                           A = amortization
                                           R = periodic payment
R = 
                    i = interest per conversion period (
)
                                          n = number of conversion periods for 
                                                 the whole term

A cellphone costs ₱ 6800 cash. You want to buy it in installment basis so you pay 
a ₱ 2500 downpayment and the balance will be paid by equal monthly 
installment payments for 8 months with interest rate of 6% compounded 
monthly. Find:

1.      the monthly payments;
APPLICATION 2.      construct an amortization schedule
3.      final or concluding payment 

In one whole sheet of paper, solve the given problem:

ASSESSMENT A loan of 6 semiannual payments of ₱450 are to be made to pay for a loan at 5 ½
% compounded semiannually. Find the value of the loan and construct an 
amortization schedule.

Solve the problems below:

1.      A loan of ₱ 8,000 is to be repaid with equal quarterly payments for 
two years with an interest rate of 4% compounded quarterly. Find the 
quarterly payment and construct an amortization schedule.
ASSIGNMENT
ASSIGNMENT

2.      Monthly payments of ₱800 each are used to settle a loan for 8 
months at 8% compounded monthly. Find the present value of the 
loan and construct an amortization schedule.

NO. OF LEARNERS WITHIN

MASTERY LEVEL

NO. OF LEARNERS NEEDING

REINFORCEMENT

NO. OF LEARNERS NEEDING

REMEDIATION

Prepared by:
HAYDEE P. MOJICA
Subject Teacher

Checked by:

Department Head
 Date: Week No. 6
DIP # Day 3

payment of an amortization.

on.

eans of new understanding.

p 278-283

ule given the following:

Principal Repaid
      ₱ 646.14
654.22
662.39
670.69
679.06
687.55
4,000.03

ded monthly will be discharged; 
 end of each three months for as 

le.

c payment for the debt?

mortization schedule?
  you apply in order to solve the 

he concepts of amortization and 
.

ny amount over a period of time, 
terest by means of a sequence of 
ments  due  at  the  end  of  equal 
rm an annuity.

n periods for 

it in installment basis so you pay 
paid by equal monthly 
 rate of 6% compounded 

le

blem:

 be made to pay for a loan at 5 ½
the loan and construct an 

with equal quarterly payments for 
compounded quarterly. Find the 
mortization schedule.
are used to settle a loan for 8 
Find the present value of the 
hedule.

HAYDEE P. MOJICA
Subject Teacher
 DIP # D
ASSESSMENT PLAN
FORMATIVE ASSESSMENT

LEARNING OBJECTIVES

LESSON/SUBJECT MATTER
REFERENCES and LEARNERS MATERIAL
USED
LEARNING TASK
PREPARATION/
PRIMING ACTIVITY

ACTIVITY

ANALYSIS

ABSTRACTION
APPLICATION

ASSESSMENT

ASSIGNMENT

NO. OF LEARNERS WITHIN MASTERY LEVEL

NO. OF LEARNERS NEEDING REINFORCEMENT

NO. OF LEARNERS NEEDING REMEDIATION

Prepared by:

Checked by:
 Date: Week No. 6
DIP # Day 4
ASSESSMENT PLAN
Refer to the daily instructional plan.
1.       Find the periodic payment and final payment of a mortgage.
2.       Solve problems involving mortgage.
3.       Value accumulated knowledge as means of new understanding.
4.       Participate actively in class activities.
Solving Problems involving Mortgage
Contemporary Business Mathematics for Colleges pp 278-283
Mathematics of Investment pp 115-118
Mathematics of Investment pp 83-93
LEARNING TASK
A.
B.       Daily Routine
      A loan of ₱ 8,000 is to be repaid with equal quarterly payments for two 

years with an interest rate of 4% compounded quarterly. Find the quarterly 
payment and construct an amortization schedule.
      Alden bought a property worth ₱ 1,000,000 by paying ₱ 100,000  and the balance 
will be paid by equal monthly installment payments for 2 years with interest rate of 8% 
compounded quarterly. 
1.      Find the periodic payment.
2.      Construct an amortization schedule.
1.      How did you find the activity?
2.      How did you compute the periodic payment for the debt?
3.      How did you come up with the amortization schedule?
4.      What mathematical principles did you apply in order to solve the given 
problem?
5.      Cite examples on how we apply the concepts of amortization and 
Mortgage is a home loan. Usually we apply the principles of amortization, that is, the 
mortgage in solving real life problems.
extinction of a debt, principal and interest by means of a sequence of equal periodic 
payments or installment payments due at the end of equal intervals of time to compute 
mortgage.
A= R

              wherein:
                                           A = amortization
                                           R = periodic payment
R = 

                                         n i = interest per conversion period (      )

                                          n = number of conversion periods for 
                                                 the whole term  (txm)
A couple bought a home through a mortgage worth ₱500,000 at 3% compounded 
quarterly for 3 years. Find
1.      the monthly payments;
2.      construct an amortization schedule
3.      final or concluding payment 
In one whole sheet of paper, solve the given problem:
A home loan worth ₱300,000 is amortized at 5% compounded semiannually for 3 
years. Find the periodic payment and construct an amortization schedule.

Solve the problems below:

1.      A mortgage worth ₱450,000 is amortized at 7% compounded annually 
for 10 years. How much will you pay at the end of each year?

2.      Maine bought a house through bank financing and amortized at 8% 
compounded quarterly for 2 years. Construct an amortization schedule.

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Subject Teacher

Department Head
HAYDEE P. MOJICA
Subject Teacher