Senior High School

Business Mathematics
Module 10:
Commissions and Interests,
Salaries and Wages

AIRs - LM
LU_Business Mathematics_Module10
ABM – BUSINESS MATHEMATICS
Module 10: Commissions and Interests, Salaries and Wages
Second Edition, 2021

Copyright © 2021
La Union Schools Division
Region I

All rights reserved. No part of this module may be reproduced in any form without written
permission from the copyright owners.

Development Team of the Module

Author: Donna M. Casilla

Editor: SDO La Union, Learning Resource Quality Assurance Team
Content Reviewer: Donna M. Casilla
Language Reviewer: Ronald June Balsomo
Illustrator: Ernesto F. Ramos Jr.
Design and Layout: Dexter B. Soller

Management Team:

Atty. Donato D. Balderas Jr.

Schools Division Superintendent
Vivian Luz S. Pagatpatan, PhD
Assistant Schools Division Superintendent
German E. Flora, PhD, CID Chief
Virgilio C. Boado, PhD, EPS in Charge of LRMS
Lorna O. Gaspar, EPS in Charge of ABM
Michael Jason D. Morales, PDO II
Claire P. Toluyen, Librarian II

Printed in the Philippines by: _________________________

Department of Education – SDO La Union

Office Address: Flores St. Catbangen, San Fernando City, La Union
Telefax: 072 – 205 – 0046
Email Address: launion@deped.gov.ph

LU_Business Mathematics_Module10
 Senior High School

Business Mathematics
Module 2: Quarter 2
Commissions and Interests,
Salaries and Wages

LU_Business Mathematics_Module10
Introductory Message

This Self-Learning Module (SLM) is prepared so that you, our dear

learners, can continue your studies and learn while at home. Activities,
questions, directions, exercises, and discussions are carefully stated for you
to understand each lesson.

Each SLM is composed of different parts. Each part shall guide you
step-by-step as you discover and understand the lesson prepared for you.

Pre-tests are provided to measure your prior knowledge on lessons in

each SLM. This will tell you if you need to proceed on completing this module
or if you need to ask your facilitator or your teacher’s assistance for better
understanding of the lesson. At the end of each module, you need to answer
the post-test to self-check your learning. Answer keys are provided for each
activity and test. We trust that you will be honest in using these.

In addition to the material in the main text, Notes to the Teacher are
also provided to our facilitators and parents for strategies and reminders on
how they can best help you on your home-based learning.

Please use this module with care. Do not put unnecessary marks on
any part of this SLM. Use a separate sheet of paper in answering the exercises
and tests. And read the instructions carefully before performing each task.

If you have any questions in using this SLM or any difficulty in

answering the tasks in this module, do not hesitate to consult your teacher
or facilitator.

Thank you.

SHS

LU_Business Mathematics_Module10
 Target

A commission is a fee that a business pays to a salesperson (agent) in

exchange for his services in either facilitating, supervising, or completing a sale. The
commission may be based on a flat arrangement or as a percentage of the revenue
generated by a salesperson. In other words, commission (remuneration) is a form of
payment to an agent for services rendered.

An interest is a fee paid for borrowing money or other assets. It set as

percentage rate of the borrowed amount over a certain time.

Employee compensation refers to the remuneration given to an employee in

exchange of his or her services. This is the legal and moral obligation of any business.
This includes wages, salaries, employee benefits including sick leave and vacation
leave, and incentive pay, which includes productivity pay, commission, override,
bonus, and profit-sharing.

Employment law does not provide a specific definition of a wage or salary

earner. However, the term “wages” is used where the amount of money the employee
receives may vary from one pay period to the next, as the amount paid is directly
dependent on the number of hours worked; and the term “salary” refers to an agreed
and fixed annual amount of money the employee receives regardless of the hours
worked.

This module will provide you with information and activities that will help you
understand more about interests and commissions. It also helps you understand
more about salary, wage, income, benefits, gross and net earnings.

After going through this module, you are expected to:

a. Solve problems involving interests and commissions

(ABM_BM11B S-IIb-14)
Subtasks:
• Define interests and commissions
• Compute for commission earned on a particular cash sale
• Compute interest due on loan
• Find the maturity value on a loan or the future value on
invested capital
• Differentiate ordinary interest and exact interest, and be able to
compute for the same
b. Define salary, wage, income, benefits (ABM_BM11S W-IIc-1)
c. Compute gross and net earnings (ABM_BM11S W-IId-2)

LU_Business Mathematics_Module10
 Lesson
Commissions and Interests
1

Let us start your journey in learning more on interests and commissions.

I am sure you are ready and excited to answer. Smile and Enjoy!

Jumpstart

Activity 1: Solve Me!

Direction: Read the following problems carefully. Show a complete solution on a

separate sheet of paper.

1. Albert receives 30% commission on the appliances he sells. If he sells a TV

for ₱12,000, a refrigerator for ₱15,000, and a heater for ₱1600, how much
does Albert make in commission?

2. Juan makes money by commission rates. He gets 15% of everything he sells.

If Juan sold ₱230,000 worth of items this month, what is his salary for the
month?

3. Roy works at a Gadget Store. For every cash purchase of a laptop, he gets
8.1%commission. In a particular month, he was able to sell 10 laptops costing
₱24,000 each. How much was his total commission for such cash sales?

4. Mark makes ₱12,000 a month plus some money by commission rates. He

gets 8% of everything he sells. If Mark sold ₱60,000 worth of items this month,
what is his salary for the month?

5. Carlo sold his house for ₱8,000,000. The real-estate agent got a 5%
commission from the sales. From his commission, he has to pay BIR tax and
other obligations required for the transfer of ownership of the property to the
buyer. This expense represents 6% of his total commission. How much net
amount will he receive?

LU_Business Mathematics_Module10
 Discover

I. Business Applications

When you work for a salary, you receive the same amount of money each week
or month. When you work for commission, you are paid a percentage of the total
sales you complete.

Commission = Commission rate × Sales

Example 1: Joshua’s sales commission rate is 6%. What is the commission from
the sale of ₱2,630,000 worth of new car sales?

Solution:

C = 6% × ₱2,630,000

C = ₱157,800.00

Therefore, the commission is ₱157,800.00.

Example 2. A salesperson gets a commission for his sales based on the following
scale: 6% on all sales 5% on all sales between ₱50,000 and ₱100,000
4% on all sales over ₱100,000 If his total sales was ₱150,000, what is his gross pay?

Solution: First commission = 6% (₱150,000)

= 0.06 (150,000)

= ₱9,000

Second commission = 5% (₱100,000 – ₱50,000)

= 0.05 (50,000)

= ₱2,500

Third commission = 4% (₱150,000 – ₱100,000)

= 0.04 (50,000)

= ₱2,000.

Therefore, his total commission, which serves as his gross pay, is

₱9,000 + ₱2,500 + ₱2,000 = ₱13,500

LU_Business Mathematics_Module10
Example 3. A real-estate agent receives a 3% commission of ₱300,000 for selling a
house. What was the price of the house?
Solution: ₱300,000 represents 3% of the total cost of the house; that is, 3%(house
cost) = ₱300,000.

Therefore, the price of the house = ₱300,000/.03 = ₱10,000,000.

II. Simple Interest

In business, capital is very important. However, not all business owners

always have enough capital to sustain their business. Often, they have to borrow
money for use in the business. It is in this context that interest plays an important
role. Borrowers need to pay interest on the money that they borrow.

Interest is a fee paid for borrowing money or other assets. The amount
borrowed is called the principal. Rate (interest rate) is the cost of using money
expressed as a percentage of the principal for a given period of time, which is usually
per year. It is generally regarded as the cost of borrowing or lending out money or
the cost of credit. Time is the term of period of the loan.

Two common types of interest are simple interest and compound interest.

Simple Interest is computed on the principal and then added to it.

Simple Interest Formula

𝑰𝑺 = 𝑷𝒓𝒕
where 𝐼𝑆 = simple interest
P = principal, or the amount invested or borrowed
r = simple interest rate
t = term or time in years

Example 1: A bank offers 0.25% annual simple interest rate for a particular deposit.
How much interest will be earned if 1 million pesos is deposited in this savings
account for 1 year?

Given: P = ₱1,000,000 I = 0.25% = 0.0025

t = 1 year Find: IS

Solution: IS = Prt

IS = (₱1,000,000) (0.0025) (1)

IS = ₱2,500

Therefore, interest earned is ₱2,500.

LU_Business Mathematics_Module10
Example 2. To buy a new car Rene needs to borrow ₱800,000.00 for 3 years at a rate
of 10% per annum. What will be the total repayments?

Solution: IS = Prt
NOTE
IS = (₱800,000) (0.1) (3) per annum
means per
IS = ₱240,000 year

Total repayments = P + IS

₱800,000 + ₱240,000

Therefore, the total repayments of Rene will be ₱1,040,000.00.

Example 3: How much interest is charged when ₱50,000 is borrowed for 9 months
at an annual interest rate of 10%?

Given: P = 50,000 r = 10% or 0.10

9
t= year = 0.75 year Find: IS
12

Note: When the term is expressed in months (M), it

𝑀
should be converted in years by t = 12

Solution: 𝐼𝑆 = 𝑃𝑟𝑡
9
= (₱50,000) (0.10) ( )
12

= (50,000) (0.10) ( 0.75)

= 3,750

Therefore, the simple interest charged is ₱3,750.

Maturity (Future) Value

𝑭 = 𝑷 + 𝑰𝒔

where F = maturity (future) value

P = principal
𝐼𝑠 = simple interest

LU_Business Mathematics_Module10
Substituting 𝐼𝑠 by Prt gives F = P + Prt, = P(1 + rt)

Maturity (Future) Value

𝑭 = 𝑷(𝟏 + 𝒓𝒕)
where F = maturity (future) value
P = principal
r = interest rate
t = term/ time in years

Example 1: Find the maturity value if 1 million pesos is deposited in a bank at an

annual simple interest rate of 0.25% after (a) 1 year (b) 5 years?

Given: P = ₱1,000,000 r = 0.25% = 0.0025

Find: (a) maturity or future value F after 1 year

(b) maturity or future value F after 5 years

Solution:

(a) When t = 1, the simple interest is given by

Method 1: IS = Prt
𝐼𝑆 = (₱1,000,000) (0.0025) (1)

= ₱2, 500

The maturity or future value is given by

𝐹 = 𝑃 + 𝐼𝑠
F = ₱1,000,000 + ₱2,500
= ₱1,002,500
Method 2: To directly solve the future value F, F = P (1 + rt)

F = (₱1,000,000) (1 + 0.0025(1))

F = ₱1,002,500

Therefore, the future or maturity value after 1 year is ₱1,002,500.

LU_Business Mathematics_Module10
(b) When t = 5,

Method 1: 𝐼𝑆 = 𝑃𝑟𝑡

= (₱1,000,000) (0.0025) (5)

= ₱12,500

𝐹 = 𝑃 + 𝐼𝑠
F = ₱1,000,000 + ₱12,500

= ₱1,012,500.00

Method 2: F = P(1 + rt)

= (₱1,000,000) (1 + 0.0025(5))

= 1,012,500

Therefore, the future or maturity value after 5 years is ₱1,012,500.

III. Ordinary Interest and Exact Interest

When time is expressed in days, interest could either be ordinary interest or exact
interest. For ordinary interest, one year is taken as 360 days (approximate days in a
year); hence,
𝐷
𝐼𝑂 = 𝑃 × 𝑟 ×
360
where D is the number of days or the time expressed in days.

For exact interest, one year is taken as 365 days (exact days in a year); hence,
𝐷
𝐼𝑒 = 𝑃 × 𝑟 ×
365
𝐷 𝐷
Take note that or replaces t in our basic formula 𝑰𝑺 = 𝑷𝒓𝒕
360 365

Example 1: Compute for (a) ordinary interest and (b) exact interest on ₱1,000.00 at
8% per month for 90 days.

Given: P = ₱1000 r = 8%

t = 90 days Find: 𝐼𝑂 and 𝐼𝑒

LU_Business Mathematics_Module10
Solutions:
𝐷
a. 𝐼𝑂 = 𝑃 × 𝑟 ×
360
90
= ₱1000 × 0.08 ×
360
90
= ₱80 ×
360
₱80
=
4
𝐼𝑂 = ₱20
𝐷
b. 𝐼𝑒 = 𝑃 × 𝑟 ×
365
90
= ₱1000 × 0.08 ×
365
= ₱80 × 0.2466
= ₱19.728 or ₱19.73

Take Note!

Ordinary interest is higher than exact interest. If the problem is silent, we

always solve for ordinary interest as that is the interest most commonly
used.

Example 2: Compute for 𝐼𝑂 and 𝐼𝑒 on ₱2,000.00 at 1% per month for 60 days.

Given: P = ₱2000 r = 1% per month

t = 60 days Find: 𝐼𝑂 and 𝐼𝑒

𝐷
a. 𝐼𝑂 = 𝑃 × 𝑟 ×
360
60
= ₱2000 × (0.01/𝑚𝑜𝑛𝑡ℎ × 12𝑚𝑜𝑛𝑡ℎ𝑠
360
60
= ₱2000 × 0.12 ×
360
1
= ₱240 ×
6
𝐼𝑂 = ₱40
𝐷
b. 𝐼𝑒 = 𝑃 × 𝑟 ×
365
(1%) × 12𝑚𝑜𝑛𝑡ℎ𝑠 60𝑑𝑎𝑦𝑠
= ₱2000 × ×
𝑚𝑜𝑛𝑡ℎ 𝑦𝑒𝑎𝑟 365𝑑𝑎𝑦𝑠/𝑦𝑒𝑎𝑟
12
= ₱2000 × × .1644
100
= ₱20 × 12 × .1644
= ₱39.46

LU_Business Mathematics_Module10
 As previously stated, ordinary interest is always higher than exact
interest, hence, is ordinarily used.

Take Note!

To apply the formula, it is necessary to restate or convert r in

terms of an annual rate because the time is expressed in years (360
days).

Explore

Here are some enrichment activities for you to work on to master and
strengthen the basic concepts you have learned from this lesson.

Enrichment Activity 1: Let’s Solve!

1. An appliance center agent sold a set of kitchen utensils for ₱20,000 and got a
₱600 commission. What was the commission rate?
2. Miguel earns a commission of 10% which is ₱10,000. How much did he sell?
3. A sales agent receives ₱12,000 a month corresponding to a sale of ₱30,000
worth of goods. Furthermore, he receives an additional 6% commission for all
sales beyond his monthly quota but not greater than ₱50,000. An additional
3% commission is for sales beyond ₱50,000. If his sales is ₱70,000 for the
month, how much is his salary for the month?

4. Marivic is a sales agent for the High Ace Realty. She is paid based on
commission only. She is given a 2% commission on her sales. For the current
month, her sales were ₱1,035,000.00. How much would be her commission?
5. A tutor at ABC Learning Center receives a monthly base pay of ₱8,000
corresponding to a ₱5,000 tutorial fee input to the Center. He gets a share of
15% of all tutorial fees beyond the mandatory ₱15,000 input. If each student
he handles pays ₱6,000/month on tutorial fees and he has five students for
the month, how much share does he receive beyond his base pay?

LU_Business Mathematics_Module10
Enrichment Activity 2: Fill the Missing Part!

A. Find the unknown principal P, rate r, time t, and interest I by completing the
table.

Principal (P) Rate (r) Time (t) Interest

2,000 5% 3 (1)
(2) 12% 5 20,000
88,000 (3) 4 8,000
500,000 9.5% (4) 285,000
1,000,000 0.5% 12 (5)

B. Complete the table by finding the unknown.

9
LU_Business Mathematics_Module2
Present Value Rate (r) Time (t) Interest Maturity
(P) Value (F)
8,000 8% 6 years (6) (7)
5,000 (8) 1 month (9) 6,000
(10) 12% 5 years and 3 (10) 400,000
months

Enrichment Activity 3: Complete the following.

P r D IO Ie
₱1,250.00 5% 30
₱2,150.00 6% 90
₱5,120.00 8% 120
₱3,480.00 1% per month 60
₱8,175.00 2%/month 90
₱4,750.00 14% 240
₱4,000.00 12% 360
₱1,000.00 1
1 %/month 10180
2
₱6,250.00 10% 180
₱1,350.00 1
3 %/month 180
2

Great job! You have understood the lesson. Here’s another fun activity to
strengthen your skills!

10

LU_Business Mathematics_Module10
 Deepen

Activity 1: Problem Solving!

1. Find the simple interest on a loan of ₱65,000 if the loan is given at a rate of
20% and is due in 3 years.

2. Amparo invested a certain amount at 10% simple interest per year. After 2
years, the interest she received amounted to ₱3,000. How much did she
invest?

3. Miko borrowed ₱25,000 at 10% annual simple interest rate. How much should
he pay after 3 years and 6 months?

4. How long will 1 million pesos earn a simple interest of 200,000 at 2% per
annum?

5. How long will an amount of ₱50,000 gain a simple interest of ₱10,000 at 4%

per annum?

Activity 2: Practice your skills!

1. Citibank pays 9% ordinary simple interest on a 30-day time deposit. How
much money will the depositor have at the end of the 30-day period if he or
she deposits ₱1,500.00?

2. The Villa Pawnshop charges 24% simple interest on the loan of all items
pawned to them. If Rose pawned her necklace for ₱1,200.00, how much will
she pay the pawnshop after 90 days assuming Villa Pawnshop charges the
following?
a. exact interest b. ordinary interest

3. Find the principal on a loan that was paid ₱1,345.00 after ordinary interest
was charged at 10% for 90 days.

4. Find the interest rate on a loan ₱1,800.00 that was paid ₱1,845.00 after 60
days from the date of loan. The interest charge was ordinary interest.

Congratulations! You did a great job!

11

LU_Business Mathematics_Module10
 Lesson
Salaries and Wages
2

Jumpstart

Warm Up Activity!

Give at least 5 examples of professions and explain how they get paid.
Completion Accuracy Organization Conventions
Score

5 The answer is All information Content is well- No major

complete. provided is organized and easy grammatical or
accurate. to read. Points follow spelling errors. No
a logical progression. more than two minor
errors.
4 The answer is All information Content is well- No major
missing slight provided is organized and easy grammatical or
details accurate. to read. Points follow spelling errors. No
a logical progression. more than five minor
errors.
3 The answer is Most Content is organized Some major and
missing information and easy to read. minor errors that
multiple details. provided is Points follow a don’t necessarily
accurate. mostly logical impair
progression. communication.
2 Content Some Content may be Major and minor
suggests lack of information unorganized and errors significantly
preparation or provided is difficult to read. weaken quality of
comprehension. accurate. Points do not follow a communication,
solidly logical although still
progression. comprehensible.
1 Content only A small amount Content is Communication
marginally of the unorganized, seriously impaired by
related to the information is illogical, and difficult multitude of
question/prom accurate. to read. spelling/grammatical
pt. errors.
0 Content fails to None of the Content is very Multitude of major
meet the basic information poorly organized, and minor errors
requirements of provided is illogical, and difficult make answer
the task. accurate. to read. incomprehensible.

Great! You finished answering the activity! Congratulations and keep on

learning!

12

LU_Business Mathematics_Module10
 Discover

Ways of Service Payment

I. Salary and Wage

Salary is the compensation usually quoted annually or monthly for an

employee. Wage, on the other hand, is compensation quoted in an hourly or daily
rate for an employee. Salary earners usually get paid every 15 days (bi-monthly) while
wage earners usually get paid either weekly or sometimes even monthly, at their
employer's convenience.

Examples to emphasize the difference between salary and wage.

Example 1: A tutor who is paid ₱200 per hour is earning a wage. How much does
he earn for a 10-hour week work?

(Solution: If he works for 10 hours a week, then he will be paid ₱2,000 for that week.)

Example 2: A university assistant professor is usually given a monthly salary. If his

salary is ₱40,000 per month, how much does he get every two weeks?

(Solution: If he gets ₱40,000 per month as his salary, then he is paid ₱20,000 every
two weeks.)

Example 3: A fast food service crew is paid per hour. If he is paid an average wage
of ₱77.43 per hour, how much will he get if he works for 6 hours and 6 days a week
for 4 weeks?

(Solution: If he works for 6 hours a day and 6 days a week for 4 weeks, then he earns
a total of ₱11,149.92 for that month.)

NOTE

The daily or hourly wage of an employee can be computed from his

monthly salary.

Art. 103. Time of payment. Wages shall be paid at least once every two (2)
weeks or twice a month at intervals not exceeding sixteen (16) days. If on account of
force majeure or circumstances beyond the employer’s control, payment of wages on
or within the time herein provided cannot be made, the employer shall pay the wages
immediately after such force majeure or circumstances have ceased. No employer
shall make payment with less frequency than once a month.

13

LU_Business Mathematics_Module10
 The payment of wages of employees engaged to perform a task which cannot
be completed in two (2) weeks shall be subject to the following conditions, in the
absence of a collective bargaining agreement or arbitration award: That payments
are made at intervals not exceeding sixteen (16) days, in proportion to the amount of
work completed. That final settlement is made upon completion of the work.
(Art. 143, P.D. 442, also known as the Labor Code of the Philippines)

II. Income and Benefits

Income is money that an individual receives in exchange for providing a

good/service or through investing capital.

Income is a broader term than wages and salary. Wages and salaries are income
to the persons receiving it. However, for people who are not employees, their income
may not be in the form of wages or salaries. They can have commission income if
they are paid for the commission on sales they make, rental income if they have
properties they rent out, dividend income if they are stockholders, royalties if they
are authors, and other income for whatever endeavor they engage in including profit-
making businesses. A business firm’s income is in the form of profits that the
business earns.

Some sources of income:

1. Farmers, fishermen and vendors earn income by providing goods such as

crops, fish and vegetables, respectively.

2. Individuals may earn income by investing their capital in stocks, mutual

funds or bank deposits.

Example 1: Joviemel is a stockholder of the Wisdom Corporation. For the current

year, the corporation declared 10% cash dividend to stockholders.
Joviemel owns 1, 000 shares of the company’s ₱10.00 par value shares.
To compute his dividend income, Joviemel’s dividend income = No. of
shares × Dividend rate = 1 000 shares × ₱10.00 par value × 10% =
₱1,000.00

Example 2: Daniel Mon is an author and his book sold 2, 500 copies for the first
semester. His book sells at ₱375 per copy. He receives a 22% royalty
from his publisher. His royalty income would be:

Daniel Mon’s royalty = 2,500 × ₱375 × 22% = ₱206,250.00

Benefits - employee compensation given by an employer on top of the basic

salary/wage. Note that benefits may come in the form of cash or in kind.

Examples: 1. Cash Benefits: 13th month pay, bonuses, rice subsidy, transportation
allowance

14

LU_Business Mathematics_Module10
 2. Non-cash benefits: SSS/GSIS, Pag-ibig, PhilHealth

III. Gross Income

The gross income of an individual refers to the total amount he/she earned before
deductions are made. Other adjustments may be payment for loans, etc.

Example 1. A teacher who gets a basic monthly salary of ₱20,000 and a living
allowance of ₱2,000 per month has an annual gross income of (20,000
x 12) + (2,000 x 12) = ₱264,000.

Example 2. A policeman who gets a basic salary of ₱25,000 per month, a living
allowance of ₱2,500 per month and a hazard pay of ₱12,000 per year
has an annual gross income of (25,000 x 12) + (2,500 x 12) + 12,000=
₱342,000.

IV. Net Income

The net income of an individual is the difference between his/her gross income and
deductions. Example of deductions applicable are income tax, SSS or GSIS
contributions, PhilHealth and Pag-ibig contributions. The deductions can be a fixed
amount or a percentage of the basic salary.

Example 1. A teacher who gets a basic monthly salary of ₱20,000 and a living
allowance of ₱2,000 per month has an annual gross income of (20,000
x 12) + (2,000 x 12) = ₱264,000.

Suppose this teacher has to pay every year ₱22,500 for income tax,
₱4,500 for PhilHealth, PhP1,200 for Pag-ibig and ₱6,975.60 for SSS
contributions, then his annual net income is 264,000 – (22,500 + 4,500
+ 1,200 + 6,975.60) = ₱228,824.40.

Example 2. A policeman who gets a basic salary of ₱25,000 per month, a living
allowance of ₱2,500 per month and a hazard pay of ₱12,000 per year
has an annual gross income of (25,000 × 12 ) + (2,500 × 12) + 12,000=
₱342,000.

Suppose this policeman has to pay annually ₱25,000 for income tax,
₱4,500 for Philhealth, ₱1,200 for Pag-ibig and ₱27,000 for GSIS
contributions, then his net annual income is 342,000 – (25,000 + 4,500
+ 1,200 +27,000) = ₱284,000.

15

LU_Business Mathematics_Module10
 Explore

Here are some enrichment activities for you to work on to master and
strengthen the basic concepts you have learned from this lesson.

Enrichment Activity 1: Problem Solving

1. A clerk earns a salary of ₱20,000 per month. If he works 8 hours a day for a
20-day work month, how much does he get per day? per hour?
2. An employee is paid a monthly salary of ₱16,000 for working 20 days in a
month. A taxi driver earns ₱750 per day. Assuming both work 8 hours a day,
who has a higher hourly wage?
3. Jenny is paid on per-piece basis at the rate of ₱2.20 per piece. If she finishes
210 pieces a week, how much is her total earnings?
4. Linda is employed to repack and seal pepper. She is paid on the following
differential pay plan schedule:

Quantity Rate Per 100

Packs
Less than 100 ₱100.00
100 - 149 ₱105.00
150 – 199 ₱107.50
200 or more ₱110.00

For the week, Linda repacked the following quantities: Monday, 95; Tuesday, 102;
Wednesday, 130; Thursday, 152; and Friday, 201. Compute her total wage for the
week.

Enrichment Activity 2: Find It!

Find the gross earnings of each of the following employees:

Employee No. of Article Total Piece Gross

Articles Rate Earnings/
Income
M T W TH F
Aireen 26 13 22 25 30 ₱2.05
Beverly 18 28 25 19 22 ₱3.98
Catherine 9 12 15 8 10 ₱10.75
David 110 95 97 122 112 ₱0.97

16

LU_Business Mathematics_Module10
 Deepen

Activity 1. Problem Solving

1. A university professor who receives a basic monthly salary of ₱80,000, a living

allowance of ₱2,000 per month, and has an investment of ₱500,000 which
earns an interest of 6% per year. Suppose this university professor has to pay
also each year ₱245,880 for income tax, ₱12,000 for Philhealth, ₱1,200 for
Pag-ibig and ₱86,400 for GSIS contributions. What is his (a) gross income (b)
net income?

2. A minimum wage earner in Metro Manila is paid ₱481 for an 8-hour workday.
If he works for 22 days in one month, what would be his gross monthly
income? Suppose the minimum wage earner is exempted from paying income
tax. His deductions per month are ₱100 for Pag-ibig, ₱200 for PhilHealth and
₱363.30 for SSS then what is his net monthly income?
3.

Gauge

Activity 1: Solve each problem.

1. Alex is a straight commission salesman. He is given commission on the basis
of the following schedule:

Monthly Sales
Less than ₱50,000.00 ------------------------------------- 1%

₱50,000.00 – ₱99,999.00 --------------------------------- 2%

₱100,000.00 – ₱149,999.00 ------------------------------ 3%

₱150,000.00 – and above --------------------------------- 4%

Compute for his commission assuming his total sales is:

a. ₱75,800.00
b. ₱49,900.00
c. ₱151,200.00
d. ₱123,500.00

17

LU_Business Mathematics_Module10
2. If an entrepreneur applies for a loan amounting to ₱500,000 in a bank, the simple
interest of which is ₱157,500 for 3 years, what interest rate is being charged?

3. How long will 1 million pesos earn a simple interest of ₱300,000 at 5% per
annum?

4. How much should you invest at the simple interest is 7.5% in order to have
₱500,000 in 2 years?

5. Queen invested ₱2,800.00 for 9 months at 2% interest per month. How much will
she get upon maturity? How much did she earn?

Congratulations! You did a great job! Now answer the post-test below!

Activity 2. Multiple Choice. DIRECTION: Read each item carefully then

answer the questions that follows. 18 LU_Business Mathematics_Module2

1. Which is TRUE about graduated commission?
A. A commission based on percentage only.
B. A commission which varies according to how much sales is made.
C. It is based on a flat arrangement or as a percentage of the revenue
generated by a salesperson.
D. It is a commission in which a salesperson gets his basic salary and a
percentage of whatever sales he makes.
2. Which of the following is INCORRECT about straight commission?
A. Commission based on percentage only.
B. It is also called as revenue commission.
C. It is a form of payment to an agent for services rendered.
D. This is very profitable if you are selling high-ticket items.
3. Which situation illustrates a salary plus commission?
A. A person who receives only salary.
B. A person who receives only commissions.
C. A person who gets paid a salary and a % of sales.
D. A person who paid percentage (%) changes based on how much he/she
sells.
4. Shin Hye is a car sales agent. She is paid commission only at the rate of 2.5%.
For the current month, she sold two cars totaling ₱1 875 000.00. What will be
her commission?
A. ₱18,630.00 B. ₱20,450.00 C. 40,875.00 D. ₱46,875.00
5. Carmela is a sales agent for the High Ace Realty. She is paid based on
commission only. She is given a 2% commission on her sales. For the current
month, her sales were ₱1 035 000.00. What is her commissions?
A.₱15,455.00 B. ₱20,700.00 C. ₱29,700.00 D. ₱30,155.00

18

LU_Business Mathematics_Module10
6. Which is TRUE about salary?
A. It is the remuneration given an employee in exchange of his or her services.
B. It refer to earnings received by worker on a piece rate, hourly rate, or daily
rate.
C. The benefits of employees paid on monthly or annual basis.
D. These include vacation and sick leaves, medical and hospitalization
benefits, meal and transportation allowance.
7. Which of the following sentences BEST describes wage?
A. The earnings received by workers on a piece rate, hourly rate, or daily rate.
B. Workers are paid in proportion quantity of work he or she finishes.
C. The excess payment over the regular rate.
D. The employee is paid for the overtime work an addition compensation
equivalent to his regular wage.
8. What is the total amount earned by an employee before deductions are made?
A. Benefits B. Gross Income C. Net Income D. Wage
19 LU_Business Mathematics_Module2
9. Tammy is paid on a per-piece basis at the rate of ₱1.20 per piece. If she finishes
360 pieces a week, how much is her total earnings?
A. ₱432.00 B. ₱435.00 C. ₱525.00 D. ₱532.00

10. Jov receives a basic pay of ₱8 500.00 a month and a 1% commission on her sales.
She sold ₱65 000.00 for the month. Her deductions are: 4% for SSS based on her
basic monthly pay; ₱100.00 for PhilHealth, 2%; and 10% Withholding Tax based
on gross earnings. What is her net pay?
A. ₱1,090.00 B. ₱3,455.00 C. ₱5,513.00 D. ₱7,612.00

19

LU_Business Mathematics_Module10
Answer Key

20

LU_Business Mathematics_Module10
21

LU_Business Mathematics_Module10
22

LU_Business Mathematics_Module10
References

Department of Education, (2014). K to 12 Senior High School Accountancy, Business,

and Management Strand, Curriculum Guide in Business Mathematics. Pasig City,
Philippines

Department of Education-Bureau of Learning Resources (DepEd-BLR), (2016).

General Mathematics Learner’s Material. Ground Floor Bonifacio Building, DepEd
Complex Meralco Avenue, Pasig City, Philippines 1600
Eather, Jenny (2014). A Math Dictionary Quick Reference. Retrieved from
http://www.amathsdictionaryforkids.com/qr/i/interest.html

Mariano, Norma, PhD (2017). Business Mathematics. Samploc, Manila, Philippines:

Rex Bookstore, Inc.

Unit, K. t. (2016). Teaching Guide for Senior High School Business Mathematics. 4th
Floor, Commission on Higher Education, C.P. Garcia Ave., Diliman, Quezon City:
Commission on Higher Education.

23

LU_Business Mathematics_Module10
 For inquiries or feedback, please write or call:

Department of Education – SDO La Union

Curriculum Implementation Division
Learning Resource Management Section
Flores St. Catbangen, San Fernando City La Union 2500
Telephone: (072) 607 - 8127
Telefax: (072) 205 - 0046
Email Address:
launion@deped.gov.ph
lrm.launion@deped.gov.ph

24

LU_Business Mathematics_Module10