COMMISSION AND SIMPLE INTEREST
LEARNING OBJECTIVES:
At the end of the lesson, you should be able to:
1. find the commission, rate of commission, total sales
and other related terms,
2. understand simple interest, and
3. solve word problems on commission, rate of
commission, total sales, simple interest, and other
related terms,
VOCABULARY
• Commission - is the amount earned by a person from
selling. This can be obtained by multipying the total sales
by the rate of commission.
• Commission = Total Sales x Rate of Commission
• Interest - is the amount earned from depositing and
lending from a bank. To obtain this, multiply the principal
amount, time, and the rate of interest
• Interest = P x R x T
Example 1:
Mr. Bautista is a hard-working person. He earns by selling
appliances. The company gives him 15% commission for all
his sales. If his total sales is ₱ 50,000.00, how much is his
commission?
C = TS x RC
Example 2
The commission received by Mr. Ruiz was ₱15,000.00 from
selling a lot. If the rate of commission given to him was 5%,
how much was his total sales?
C = TS x RC
Example 3
Benjie received ₱4,870.00 as commission for selling an
insurance policy that is worth ₱48,500.00. What is the rate
of commission?
C = TS x RC
Example 4
In one month, Timmy saves ₱ 2,000.00 from the daily
allowance his parents gives him. He plans to deposit this in
a bank. If the bank gives him 7% simple interest in a year,
how much interest will his money earn in a year?
I=PxRxT
Example 5
Edwin borrowed money from the bank amounting to
₱10,000.00. The interest rate of the bank is 6% a year. Find
the total amount he has to pay after a year.
I=PxRxT
TA = P + I
Complete the table below.
COMMISSION
₱ 500.00
RATE OF COMMISSION
5%
TOTAL SALES
2.5%
₱ 950.00
₱ 9,500.00
₱ 8,400.00
8.5%
₱ 5,600.00
₱ 600.00
₱ 250
PRINCIPAL AMOUNT
RATE
TIME
₱ 23,500
4%
5 YEARS
₱ 5,000
3.5%
3 YEARS
₱300,000
1 1/2 YEARS
₱28,000
5.5%
₱10,000
6%
INTEREST
TOTAL AMOUNT PAID
₱324,000
₱32,000
1 YEAR