11

General Mathematics
Activity Sheets
Quarter 2 – MELC 14
Illustrating Business and
Consumer Loans

REGION VI – WESTERN VISAYAS

General Mathematics 11
Activity Sheet No. 14
First Edition, 2020
Published in the Philippines
By the Department of Education
Region 6 – Western Visayas

Republic Act 8293, section 176 states that: No copyright shall subsist in
any work of the Government of the Philippines. However, prior approval of the
government agency or office wherein the work is created shall be necessary for
exploitation of such work for profit. Such agency or office may, among other
things, impose as a condition the payment of royalties.

This Learning Activity Sheet is developed by DepEd Region 6 – Western

Visayas.

ALL RIGHTS RESERVED. No part of this learning resource may be

reproduced or transmitted in any form or by any means electronic or mechanical
without written permission from the DepEd Regional Office 6 – Western Visayas.

Development Team of General Mathematics Activity Sheet

Writer: Michael M. Luna

Illustrator: Michael M. Luna

Layout Artist: Michael M. Luna

Schools Division Quality Assurance Team:

Ligaya H. Montelijao, EPS-Mathematics
Leila G. Valencia, EPS-LR
Jezereel Grace G. Tiron
Bernie P. Alcedo
Division of Iloilo City Management Team:
Ma. Luz M. De los Reyes, SDS
Ernesto F. Servillon Jr., ASDS
Arlo L. Villalva, CID Chief
Dr. Jerry M. Lego, SGOD Chief
Leila G. Valencia, EPS-LR
Ligaya H. Montelijao, EPS-Mathematics
Regional Management Team
Ma. Gemma M. Ledesma,
Dr. Josilyn S. Solana,
Dr. Elena P. Gonzaga,
Mr. Donald T. Genine,
Mr. Adonis Mosquera
Mrs. Rhodalyn Delcano

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Introductory Message
Welcome to General Mathematics 11!

The Learning Activity Sheet is a product of the collaborative efforts of the

Schools Division of Iloilo City and DepEd Regional Office VI - Western Visayas
through the Curriculum and Learning Management Division (CLMD). This is
developed to guide the learning facilitators (teachers, parents and responsible
adults) in helping the learners meet the standards set by the K to 12 Basic
Education Curriculum.

The Learning Activity Sheet is self-directed instructional materials aimed

to guide the learners in accomplishing activities at their own pace and time using
the contextualized resources in the community. This will also assist the learners in
acquiring the lifelong learning skills, knowledge and attitudes for productivity and
employment.

For learning facilitator:

The General Mathematics Activity Sheet will help you facilitate the
teaching-learning activities specified in each Most Essential Learning Competency
(MELC) with minimal or no face-to-face encounter between you and learner. This
will be made available to the learners with the references/links to ease the
independent learning.

For the learner:

The General Mathematics Activity Sheet is developed to help you

continue learning even if you are not in school. This learning material provides you
with meaningful and engaging activities for independent learning. Being an active
learner, carefully read and understand the instructions then perform the activities
and answer the assessments. This will be returned to your facilitator on the agreed
schedule.

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 Quarter 2, Week 6

Learning Activity Sheets (LAS) No. 14

Name of Learner: ___________________ Grade and Section: _________________

Date: _____________________________

GENERAL MATHEMATICS ACTIVITY SHEET

Illustrating Business and Consumer Loans

I. Learning Competency with Code

Illustrates business and consumer loans. (M11GM-IIf-1)

II. Background Information for Learners

There are certain events where finances need to be compensated in a
short period of time by individuals for their personal needs or for the
operations of companies.
These financial needs can be solved through a credit vehicle where
money is lent to individuals or companies which must be paid in a period.
The money lent is called a loan. Banks are offering different types of loans
depending on a specific purpose. In general, the loans may be identified as
either a business or consumer loan.
Important Terminologies:
 Loan – it is a form of debt where money is lent to another party from an
institution in exchange for payment in a period with interests.
 Collateral – assets used to secure the loan
 Business Loans – loans that are intended for starting-up or boosting
businesses.
 Consumer Loans – these are loans to finance consumer’s specific
needs.

Loans
These are forms of debts that are lent by a company, financial institution or
by the government to an individual or company. Loans come in different
forms including secured, unsecured, commercial/business, and
personal/consumer loans.

1. Learn more of Loan from the article of Kagan, J. (2020) at Investopedia.

The link to the article is
https://www.investopedia.com/terms/l/loan.asp
As you read the article, please be guided of the following:
a. What is a loan?
b. What are the loan terms that are agreed mostly by two parties?
c. How does loan works?
Consumer/Personal Loans
These form of loans is through individual initiative to avail loan from
creditors. The loans can be secured where the terms include backed-up by
the assets of the borrowers while unsecured loans are loans which do not
have any collateral payments.

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1. Learn more with CFITM on Consumer Loans at
https://corporatefinanceinstitute.com/resources/knowledge/credit/consu
mer-loan/#:~:text=A%20consumer%20loan%20is%20a,Federal
%20Reserve%20Act%20in%201913

Please be guided with these questions as you go along the article:

a. What is a consumer loan?
b. What are the different types of consumer loans?
c. How can you tell that a loan is secured or unsecured?
2. Another term mostly used for consumer loans is personal loans. Read
on the Personal Loan by Lake, R. (2020) at Investopedia with link
https://www.investopedia.com/personal-loan-5076027
a. When comparing personal loans offered, what should be kept in
mind?
b. What are the details you should focus on?

Business/Commercial Loans
To start a business or to maintain some operations of the business, one
need to have an amount of money. These may be funded through loans
which are intended for business. These type of loans falls under business
loans.

1. Learn more with business loan on the article by Guinan, K. (2020) titled
“What is a business loan” at https://www.finder.com/what-is-a-
business-loan

Please be guided with these questions as you go along the article:

a. What is a business loan?
b. What are the different types of business loans?
c. What will happen if the loan is not paid?

Illustration of Loans:
1. Read the Learner’s Material for General Mathematics of DepEd (2016)
pp 225. Familiarize yourself with some illustrations of business and
consumer loans.

Example 1: Juan is a government employee who is receiving a good

salary every month. He dreams to have a house of his own. However, he
needs a huge amount of money which his salary may not be enough to
start-up his dream. So, he planned to avail a loan from a bank.
1. What loan Juan should take?
A: Juan should apply for a Housing Loan.
B: Juan may apply for a Salary Loan.
2. Which of these options is safer?
3. What type of loan did Juan take in number 1?

Solutions:

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 1. It depends on the availability of his funds. He may apply for Housing
Loan for a bigger amount of money which may get higher cut from his
salary or the amount to be paid monthly is more than his salary.
2. On the other hand, he may opt to apply for a Salary Loan where the
amount of money to be borrowed is relative to his salary. He is safer on
this choice since the loanable amount should not exceed his salary.
3. Both options are Consumer loans since the purpose of the loan is for
personal consumption, in this case is his dream house. Moreover, the
source of funds is his personal salary.
Example 2: Pedro is a co-employee of Juan, but Pedro’s dream is to have
his own business. Pedro also went to the bank and planned to avail a loan.
His options are A: Business Loan or B: Salary Loan.
1. What loan should Pedro take?
2. What type of loan did Pedro take in number 1?

Solutions:
1. In this situation, Pedro must take A which is business loan because his
purpose is to establish a business of his own. Salary loan may not be
applicable in this scenario since the source of fund of Pedro should be
the income of his business.
2. Pedro should be taking a business loan since the objective is to start a
business and the source of funds is the income of the said business.

III. Accompanying DepEd Textbook and Education Sites

Department of Education (2016). General Mathematics: Learner’s Material,
pp 225. DepEd-BLR, Philippines.

CFITM. Consumer Loan. Retrieved from

https://corporatefinanceinstitute.com/resources/knowledge/credit/cons
umer-loan/#:~:text=A%20consumer%20loan%20is%20a,Federal
%20Reserve%20Act%20in%201913

Guinan, K. (2020). What is a business loan. Finder. Retrieved from

https://www.finder.com/what-is-a-business-loan

Kagan, J. (2020). Loan. Investopedia. Retrieved from

https://www.investopedia.com/terms/l/loan.asp

Lake, R. (2020). Personal loan. Investopedia. Retrieved from

https://www.investopedia.com/personal-loan-5076027

IV. Activity Proper

General Directions: In answering the exercises in the Learning Activity
Sheet (LAS), please do not write anything in the LAS. All answers must be
written in a separate sheet of paper. Read each problem carefully and
answer it systematically. If solution is required, encircle your final answer.
1. Activity 1: Loans in Icons. Identify what loans the graphics/icons
illustrate. Write CL if it is a type of consumer loan and BL if it is a type

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 of a business loan. Number 1 is given as an example.
Loans Type of Loan
1. Personal/Training

CL
https://i mg.ic
ons8.com/ios/452/personal-trainer.png

2. ________

https://img.icons8.com/bubbles/2x/school.png

3. ________

https://mpng.subpng.com/20180401/ybe/kisspng-
computer-icons-consultant-businessperson-sales-
sports-personal-
5ac0d0822b1a18.7313195615225857301766.jpg

4. ________

https://img.flaticon.com/icons/png/512/25/25694.png
?
size=1200x630f&pad=10,10,10,10&ext=png&bg=FF
FFFFFF

5. ________

https://cdn.onlinewebfonts.com/svg/img_298866.png

6. ________

https://toppng.com/uploads/preview/city-icons-free-
building-infrastructure-icon-
115535087756tonc4qims.png

7. ________

https://cdn5.vectorstock.com/i/1000x1000/36/59/car-
icon-black-silhouette-of-automobile-isolated-vector-
7213659.jpg

Please be guided by the following questions when completing the table.

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 a. What loan does each icon/graphics illustrate?
b. Which of these loans is a type of consumer loan? Business
loan?
c. How can you tell that it belongs to consumer loan? or business
loan?
2. Activity 2: Help Me Decide.
A. Dr. Francis have his own dental clinic. He wants to improve his
equipment in the clinic. The money needed is too big, so he
decided to avail a loan. His options are either Equipment Loan or
Health Loan.
a. What loan should he take? Why?
b. What type of loan is he taking?
B. Mother Lily do not have enough money for his son’s college
tuition. Her son dreams to become a seaman but it is too
expensive. The bank offers loan as a solution. She should
choose from Education and Salary loan.
a. What loan should she take? Why?
b. What type of loan is she taking?
V. Reflection
Instruction. Reflect on the following questions and write your response on
your journal.
1. What important idea/s have you learned from the learning activity
sheet?
2. What important value/s has been embedded to you by the lesson?
3. In what way can you apply or use the lessons learned in your daily life
as a student or in the future?

VI. Answer Key

family.
the purpose of the loan is for her
source of fund is her salary, and
b. Personal loan because the
salary loan.
not to other expenses unlike
will go directly to the tuition and
appropriate because the money 4. Housing/Home
objective is her son’s tuition. This
a. Education Loan since her

source of income.
clinic is his business and the
b. Business loan because his
is to enhance his clinic.
a. Equipment Loan since his goal
Activity 2
Activity 1