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Types of Commission
Commission on Cash Basis and Installment Basis
Down payment, Gross Balance, Current increase balance
Problems involving Interest and Commission
An amount of money paid to an
employee for selling something
calculated to be the person's wage based
solely on sales
A person gets paid a salary and a
An employee gets an amount of money
that varies depending on his/her sales
(when the % changes based on how
much someone sells)
calculated to be the
COMMISSION person's wage based
solely on sales
Henry receives 30% commission on
the appliances he sells. If he sells
appliances with an amount of
P11,900, how much does Henry make
STRAIGHT in commission?
Commission = Net Sales x rate of commission
Juliet receives 25% commission on
the appliances she sells. If she sells a
computer for P7,500, a printer for
P9,800 and a cellphone for P12,000,
STRAIGHT how much does Juliet make in
COMMISSION commission?
SALARY PLUS A person gets paid a
COMMISSION salary and a commission
Henry receives 30% commission on
the appliances he sells weekly. If he
sells appliances with an amount of
P11,900, how much is his gross pay if
SALARY PLUS his company pays him P350 per day ?
GROSS PAY = Salary + (NS x RC)
Garry decides to work for a company
that will pay him P3,500 per week and
6% of any sales above P30,000. If he
sold goods worth P56,880, what is his
SALARY PLUS gross pay?
An employee gets an
amount of money that
varies depending on
GRADUATED his/her sales
(when the % changes
based on how much
someone sells)
Paul works for a company that pays
him 4% on the first P5,000 sold, 7%
on the next P15,000 sold and 12% on
all sales over P20,000. What is his
GRADUATED gross pay if he sold P25,000
GROSS PAY = C1 + C2 +…+ Cn
Patrick works at the Brick, and is
paid based on his weekly sales.
Last week he sold a couch for
Php12,800, and a chair for
Example 1 Php5500, and two stoves at
Php2250 each. If Patrick earns
12.5% commission on all items
sold, how much did he make last
Barbie, the assistant manager of a
clothing store, earns a salary of
Php3,500.00 per week. She also
receives a 5% commission on the
Example 2 first Php9,000.00 she sells, and
6% on sales over Php9,000.00. If
Barb sold Php17,000 worth of
clothes last month, what was her
monthly total pay?
Mike decides to work for another
company that will pay him
PhP2,000 per week and 10%
Example 3 commission on sales above
PhP20,000 for the week.
If he sold goods worth PhP26,000,
what is his gross pay?
Mike works at ABC Gadget Store.
For every cash purchase of a cell
COMMISSION phone, he gets 6.1%commission. In
- cash basis a particular month, he was able to
sell 10 cellphones costing P18,000
each. How much was his total
commission for such cash sales?
Total Sales
= P18,000/cellphone x 10 cellphone
= P180,000
- cash basis
Cash commission
=P180,000 x 6.1%
= P180,000 x 0.061
= P10,980
 At ABC Gadget Store, some items are paid on
installment basis through credit cards. Mike was
able to sell 10 cellphones costing PhP18,000
each. Each transaction is payable in 6 months
equally divided into 6 equal installments without
COMMISSION interest. Mike gets 2% commission on the first
- installment month for each of the 10 cell phones.
Commission decreases by 0.30% every month
basis thereafter and computed on the outstanding
balance for the month. How much commission
does Mike receive on the first month? On the
second month? On the third month? On the
fourth month? On the fifth month? On the sixth
month? At the end of installment period, how
much will be his total commission?
 Solution:
First month commission:
P18,000/cellphone x 10 cellphones x 0.02 = P3,600
Second month commission:
P15,000/cellphone x 10 cellphones x (0.02 – 0.003) = P2,550
COMMISSION Third month commission:
- installment P 12,000/cellphone x 10 cellphones x (0.017 – 0.003) = P1,680
Fourth month commission:
basis P 9,000/cellphone x 10 cellphones x (0.014 – 0 .003) = P990
Fifth month commission:
P 6,000/cellphones x 10 cellphones x (0.011 – 0.003) = P480
Sixth month commission:
P3,000/cellphone x 10 cellphones x (0.008 – 0.003) = P150

His total commission for six months is P9,450.

first payment that one makes when
one buys something with an
payment agreement to pay the rest later.
 Car dealers normally require a minimum down
payment, which is usually 20% of the total cost of
the vehicle being purchased. The interest on the
remaining balance is then computed depending on
the number of years a buyer would want to
amortize the remaining balance.

A car cost P3, 500, 000 which was sold
to Mr. Cruz in an installment basis. How
much will be Mr. Cruz’s down payment
for the car?
 Companies selling houses or condo units lure buyers by
stating that no down payment is required but only a certain
amount of reservation fee is required. The reservation fee
paid is deductible when the buyer decides to proceed with
the purchase. Otherwise, it will be forfeited in favor of the
company. After the reservation fee has been paid, the buyer
is told to pay the monthly amortization. For instance,
P10,000 per month for two years without interest. At the end
of two years, the remaining balance will now be subjected to
HOUSE an interest either through in-house or bank financing.
 Other companies selling houses or condo units also have
schemes like requiring the buyer to pay a certain cash
amount after one year aside from the monthly amortization.
The cash amount increases for the next year up to the third
year. At the end of the third year, all cash amounts and
monthly amortizations paid by the buyer are deducted from
the purchase price of the unit being bought. The remaining
amount will be the one subjected to an interest either
through in-house or bank financing.
 This refers to the total amount of money a bank
has on deposit before adjusting for uncleared
checks or deposits, as well as reserve
requirements. That is, the book balance is a
BOOK measure of what the bank has on hand before
BALANCE/ adding or subtracting regulatory obligations and
GROSS items that will soon appear on its books. This is
the term used by banks to describe the amount
BALANCE of money available before any adjustment is
made for deposits in transit, checks that have
not been cleared, and reserve requirements and
interest received from “float funds”.
 Example 1:
A check amounting to P5,000 that has been
deposited today may not be withdrawn the next
BOOK day because it has not cleared yet. If your bank
BALANCE passbook currently contains P30,000, you may
not be able to withdraw the whole amount yet
because your gross balance is only PhP25,000
since your check has not been cleared yet.
This may refer to the total amount you
have to pay that includes penalties or
interest incurred by unpaid balance from
a loan or payment you are supposed to
have made but was not able to do so on
 As of this month’s cut-off date, the current total
amount due from your purchases using your
credit card is P 99,386.59. The minimum
required payment is 5% of the total amount due.
CURRENT If you pay only the minimum required payment,
a financing charge of 3.4% of the remaining
INCREASE balance will be charged to the next bill.
BALANCE Assuming you refrain from using your credit
card on any of your purchases for the next 3
months and the financing charge of 3.4% is
charged every billing period, show your
expected monthly bill for the next 3 months.