Chapter 6: Lesson 2

Discount, Simple
Interest,
and Commission
 Discount
• The term “discount” refers to a reduction in the
listed or marked price in order to sell a product
for a lower price.
• A discount can be expressed as an amount or as
a percent.
• The difference between the listed price or
marked price and the selling price is the
discount.
 Finding Discount
Terms:
1. Original price – refers to the regular price of the
item.
2. Rate of Discounts – refers to the percent Taken off
from the original price.
3. Net price / Sale price – refers to the price of the item
after the discount has been deducted.
Discount Formula
Example 1
A bag was sold for Php 630.00. What was the
original price of the bag if there was a 30%
discount?

Given
net price= 630 php
rate of discount= 30%
original price= ?
Solution
Example 2
The price of a motorbike is 1,500$. How much do
you need to pay if you get a 10% discount?

Given
net price= ?
rate of discount= 10%
original price= 1500$
Solution
 Simple Interest

• Simple interest is an interest charge that

borrowers pay lenders for a loan. It is calculated
using the principal only and does not include
compounding interest.
 Computing Simple Interest
Terms:
1.Principal (P) – refers to the amount of money, invested,
deposited or borrowed. Rate of
2.Interest (R) refers to the percent added to the principal
amount.
3.Time (T) – refers to the length of time the money has been
deposited, invested, or borrowed
4.Amount Due – refers to the total amount to be paid or
received after a certain period of time that the principal
has been borrowed or deposited.
Simple Interest Formula
Example 1
Francis deposited PHP 25,000 in a savings bank account.
The bank pays 0.25% per year annum (yearly). What will
the total amount of savings of Francis after 3 years?

Given
principal= 25,000 php
rate of interest= 0.25% or 0.0025
time= 3 years
amount due= ?
Solution
Example 2
A bank is offerring 2.5% simple interest on a
savings account. If you deposit $5000, how much
interest will you earn in 1 year?

Given
principal= $5000
rate of interest= 0.25
time= 1 year
interest= ?
Solution
 Commission

• A commission is a percentage of total sales as

determined by the rate of commission.
 Computing Commission
Terms:
1.Total Sales - refers to the total amount of sales made by a
salesperson
2.Rate of Commission - refers to the percent taken off from
the selling price
3.Net proceeds - refers to the amount that remains after the
commission has been deducted from the total sales
Commission Formula
Example 1
A car sold for php720,000 and the dealer gets a
php108,000 commission. What is the rate of commission
given?

Given
total sales= 720,000 php
rate of commission= ?
commission= 108,000 php
Solution
Example 2
Mr. Francisco, a sales agent, delivers 100 reams of bond
paper worth php 13,500. How much will he receive if he
has 20% commission?

Given
total sales= 13,500 php
rate of commission= 20% (0.2)
commission= ?
Solution
EXERCI
SE
Mr. Mendoza sells a house and lot worth
500,000 php and receives a commission of
5%.How much is his commission?
EXERCI
SE
The price of a computer after discount was
$1200. If the discount was 20%, what was the
original price?
EXERCI
SE
A salesman receives a commission of 7.5%
for any sale that he makes. What will his
commission be of he sold a car for 560,000
php? How much is the net proceeds?
EXERCI
SE
The price of an apple is $1.25. If you get 20%
discount, how much do you have to pay?
EXERCI
SE
Php 10,500 is invested for 9 years in an
account paying annual simple interest. If the
total amoiut of interest earned was php 1890,
how much was the interest rate?
EXERCI
SE
How much money was invested at 6% annual
simple interest for 3 years to earn php3870?