N = ₱9,528.

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LEARNING ACTIVITY SHEET
ABM 11 Business Mathematics (Q2-WK2) Example 2. If E = ₱16,789.50 and N = ₱15,890.32, what is the value of D?
Gross and Net Earnings Solution: D = E-N
D = ₱16,789.50 - ₱15,890.32
Discussion
D = ₱899.18

Let us define first the important terms in this lesson.

Example 3. Mary has monthly gross earnings of ₱12,350 and a total
Gross Earnings, also known as gross income or total earnings, is the total
deduction of ₱2,890. How much is her net pay? What is her half net pay?
income of a person before deducting the taxes, benefits, loans and other
Solution: N = E-D
possible deductions.
N = ₱12,350 - ₱2,890
Gross earnings = Net earnings + Deductions
N = ₱9,460
Net Earnings is what remains after deducting the taxes, benefits, loans N ₱ 9,460
To find her half net pay, divide it by 2 = = = ₱4,730
and other deductions. It is the take home pay of an employee. 2 2
Net earnings = Gross earnings – Total deductions
Example 4. Study the table below.
Deduction are amounts that are subtracted from your gross income.
Examples are insurance pension contributions, wage assignments, taxes Pay slip for the Month of October,2020
and other amounts withheld by the employer. Employee Juan Dela Cruz Paid Days 26
Deduction = Gross Income – Net Income Position Technician
Earnings Amount Deductions Amount
Salary is a fixed regular payment, typically in a monthly or biweekly basis Basic Salary ₱24,760 Tax ₱100
but often expressed as an annual sum, made by an employer to an
Over Time Philhealth ₱100
employee.
E-cola ₱112 SSS ₱540
We will assign the value of total earnings as E, net earnings as N and Seniority ₱1,500 Loan ₱1,500
deduction as D.
The equation to find the total earnings is E = D+N. Net Pay:
The equation to find the deduction is D = E-N.
The equation to find the net earnings is N = E-D. a. How much is the total earnings of Juan?
Solution: Add all the earnings given in his pay slip
Example 1. Find the value of N if the total earnings is ₱10,783.25 and the Total Earnings E = Basic Salary + E-cola +Seniority
total deduction is ₱1,254.67. Total Earnings E = ₱24,760+ ₱112+ ₱1,500 = ₱26,372
Solution: N = E-D b. How much is his total deductions?
N = ₱10,783.25 - ₱1,254.67 Total Deductions D= Tax + Philhealth + SSS + Loan
 = ₱100+₱100+₱540+₱1,500 = ₱2,240 3. If E= ₱13,456.75 and N = ₱11,945, what is the value of D?
c. How much is his net pay? 4. If E = ₱24,560 and D = ₱2,345, what is the value of N?
Formula in finding the net pay is N = E-D 5. If D = ₱1,760.35 and N = ₱10,896, what is the value of E?
N= ₱26,372 - ₱2,240 = ₱24,132 For items 6-8. Arlene is working in a clothing company as Assistant
Manager. She is paid a weekly salary of ₱6,780.
Example 5. Mr. Santiago has a net income of ₱320,000. What is his 6. How much would Arlene earn in a month (4 weeks)?
annual gross income if the total deduction is 20% of his gross? How much 7. How much is her net earnings if she has a total deduction of ₱2,450 in
is his deduction? a month?
8. How much is her net earnings if her deduction is 15% of her gross
income?
Solution: N = ₱320,000
9. Carlo works for 5 days a week and earns ₱3,500. How much does he
To find the value of gross income, let x be the value of gross
earn for 5 weeks?
income. Thus E = x
10. A saleslady is paid a weekly salary of ₱2,950. If she has deduction of
D = 20% of his gross income. Thus, D = 0.20x ₱2,345, how much is her total earnings in a month (4 weeks)?
To find the gross income use the formula E = N+D
Substitute the values in the formula. x = ₱320,000 + 0.20x VI. Assessment
Transpose 0.20x to the left side then change the sign.
x-0.20x = ₱320,000 A. Multiple Choice. Read each question carefully then write the letter of
Subtract the values of x 0.8x = ₱320,000 the best answer from the given choices. Use separate sheet of paper for
0.8 x ₱ 320,000 your answer and solution.
Divide both sides by 0.8 =
0.8 0.8
₱400,000 1. Which of the following statement is TRUE?
So, his annual gross income is ₱400,000. A. Gross earnings is sometimes greater than net income.
B. Net earnings can be greater than gross earnings.
To find his deduction, use the formula D = E-N
C. The total deduction is always equal to the net earnings.
D = ₱400,000 - ₱320,000 = ₱80,000
D. Taxes are added in the deductions.
2. If D = 2x and N = ₱6,450, what is the value of E?
V. Activities
A. E = 2x-₱6,450 C. E = ₱6,450+2x
₱ 6,450
It is time for you to try the following activities since are now done with the B. E = ₱6,450-2x D. E =
examples in finding the gross earnings, net earnings, and deduction.
2x

Hence, D represents the total deduction, N the net income, and E the total 3. Annie is working in Company A. She receives a monthly salary of
earnings. Solve the following problems. ₱26,780. How much is her net earnings if she has a deduction of ₱1,235?
A. ₱25,545 C. ₱24,590
1. If E = ₱8,980 and D = ₱1,067, what is the value of N? B. ₱24,560 D. ₱23,895
2. If D = ₱ 3,456.50 and N = ₱16,780, what is the value of E? 4. Which of the following statement is FALSE?
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 A. Gross earnings is twice of the net earnings. Position Sales staff
B. Overtime pay is part of the total earnings. Earnings Amount Deductions Amount
C. If the total deduction is 0, then the gross and net earnings is Basic Salary ₱16,560 Tax ₱200
equal. Over Time ₱2,890 Philhealth ₱100
D. Net earnings + deduction is equal to gross earnings.
E-cola ₱300 SSS ₱540
5. If E = ₱9,320 and D= ₱678, what is the value of N?
Seniority ₱2,000 Loan ₱1,200
A. ₱6,824 C. ₱8,980
B. ₱8,642 D. ₱9,080
6. Shiena has a total deduction of ₱1,650. What is her gross earnings if 11. How much is her total gross earnings?
her net earnings is 6 times of her deduction? A. ₱21,750 C. ₱23,890
A. ₱9,900 C. ₱11,230 B. ₱22,450 D. ₱25,712
B. ₱10,807 D. ₱11,550 12. How much is her total deduction?
For items 7-9. Alvin is working in Company B and his gross earnings in 1 A. ₱1,740 C. ₱1,904
year is ₱560,000. B. ₱740 D. ₱2,040
7. If he has a total deduction of ₱45,000, how much is his annual net 13. How much is her net earnings?
earnings? A. ₱17,450 C. ₱19,710
A. ₱467,000 C. ₱515,000 B. ₱18,914 D. ₱21, 310
B. ₱498,000 D. ₱523,000 14. A security guard has a deduction of 3y and net earnings of 2x, what is
8. If his total deduction is 15% of his gross earnings, how much is his the formula in finding his gross income?
annual net earnings? A. E = N+D C. E = 2x-3y
A. ₱476,000 C. ₱518,000 2x
B. E = 2x+3y D. E =
B. ₱490,600 D. ₱523,900 3y
9. If his annual net earnings is 9 times to the his deduction, how much is 15. If Sheila has a deduction of ₱1,320 where his total net earnings is 11
his annual deduction? times to its deduction. Find the value of his net earnings?
A. ₱36,000 C. ₱43,000 A. ₱14,520 C. ₱18,670
B. ₱56,000 D. ₱65,000 B. ₱15,897 D. ₱20,450
10. The net earnings of Ram monthly is 87% of his gross income which is
₱37,560. How much is his net earnings? VII. Reflection
A. ₱30,678.50 C.₱32,6772.20 Interview two people you know who work full time. Choose one
B. ₱31,430.76 D. ₱34,897.35 person who is paid a salary, and another who is paid by the hour. Find
out each person’s job title and list his or her job responsibilities. Ask each
For items 11-13. Maria is working as sales staff in a department store. person if they like the method by which they are paid. For example, ask
Below is her pay slip. the salaried employee whether he or she would rather be paid hourly. Ask
the hourly employee whether he or she would prefer to be paid a salary.
Pay slip for the Month of October,2020 Be sure to ask them for their reasons.
Employee Maria Santos Paid Days 26

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 Make a complete list of all job responsibilities, and methods of
payment. Discuss reasons why salaried ang hourly paid employees liked
and dislikes their methods of payment. Look for general trends among the
types of jobs that are salaried and the types that are paid hourly.