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Interest, Commission, and Discounts

The document defines key terms used to calculate discounts, commissions, and simple interest. It explains the formulas used to calculate original price from a discounted price, commission rate from total sales and commission amount, and total amount due from principal, interest rate, and time. An example is provided for each calculation to demonstrate how to apply the formulas.

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Julius Caesar Collado
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2K views3 pages

Interest, Commission, and Discounts

The document defines key terms used to calculate discounts, commissions, and simple interest. It explains the formulas used to calculate original price from a discounted price, commission rate from total sales and commission amount, and total amount due from principal, interest rate, and time. An example is provided for each calculation to demonstrate how to apply the formulas.

Uploaded by

Julius Caesar Collado
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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Finding Discounts:

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.
Formulas:
Discounts = Original Price x Rate of Discounts
Discounts
Rate of Discounts = x 100
Original price
Discounts
Original price =
Rate of Discounts
Net Price = Original price – Discount
or Net Price = Original price x (100% - Rate of Discounts)

Example: A bag was sold for Php 630.00. What was the original price of the bag if there was a 30% discount?

Solution:
Net Price = Original price x (100% - Rate of Discounts)
Php 630.00 = Original price x (100% -30%)
Php 630.00 = Original price x (70%)
630 70% = 0.70
= Original price
0.70
Original price = Php 900.00

Computing Commission
Terms:
Total Sales – refers to the total amount of sales made by a salesperson
Rate of Commission – refers to the percent taken off from the selling price
Net proceeds – refers to the amount that remains after the commission has been deducted from the
total sales.
Formulas:
Commission = Total sales x Rate of commission
Commission
Total sales =
Rate of commission
Commission
Rate of Commission = x 100
Total sales
Net proceeds = Total sales – Commission
or Net Proceeds = Total Sales x (100% - Rate of Commission)
Example:
A car sold for Php 720,000.00 and the dealer gets a Php 108, 000 commission. What is the rate of
commission given?
Commission
Rate of Commission = x 100
Total sales
108,000
Rate of commission = x 100
720,000
Rate of commission = 0.15 x 100
Rate of commission = 15 %

Computing Simple Interest

Principal (P) – refers to the amount of money, invested, deposited or borrowed.

Rate of Interest (R) refers to the percent added to the principal amount.

Time (T) – refers to the length of time the money has been deposited, invested, or borrowed

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.

Formulas:

I
I=PxRxT T= Amount Due = P x I
PxR
I I
P= R= x 100 Amount Due = P x (1 + R x T)
RxT PxT
Example:

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?

Solution: Amount Due = P x (1 + R x T)

= Php 25,000 x (1 + 0.0025 x 3)

= PHP 25,000 x (1 + 0.0075)

= PHP 25,000 x 1.0075

= Php 25,187.50

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