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# 1ST SEMESTER A.Y.

2017-2018

## AMORTIZATION WITH EQUAL REGULAR PAYMENTS

1. Zyrus buys a brand new laptop worth P62,500. He pays 20% of the cost as down payment. He agrees to pay for
the remaining balance through installment provided that his property of the same value will serve as a collateral
in case of non-payment. The balance at 12% compounded monthly is to be settled by making equal payments
every end of the month for half a year. Prepare an amortization table. (Round off to 2 decimal places)

0.12 1
i= = 0.01 n= year x 12 mos. = 6 periods P = P62,500 x 0.80 = P50,000
12 mos. 2

0.01
A=P = P50,000 = P50,000 (0.1725483667) = P8,627.42
1(1+) 1(1+0.1)6

n [ A = ( I = OLprior x ) + P ] OL
Payment Period Payment Interest Principal Outstanding
Interval Liability
0 - - - P 50,000.00
1 P 8,627.42 P 500.00 P 8,127.42 41,872.58
2 8,627.42 418.73 8,208.69 33,663.89
3 8,627.42 336.64 8,290.78 25,373.11
4 8,627.42 253.73 8,373.69 16,999.42
5 8,627.42 169.99 8,457.43 8,541.99
6 8,627.42 85.42 8,541.99 0.00
Total P 51.764.51 P 1,764.51 P 50,000.00

## COMMISSIONS, OVERRIDES, ALLOWANCES, AND GROSS EARNINGS

2. Ford is paid an annual salary of P132,000 plus commission on all sales above his quota of P20,000 a month
according to the following schedule: 1% on the first P10,000; 2% on the second P10,000; and 4% on sales above
quota exceeding the foregoing P20,000. In addition, he is granted transportation allowance of P1,000 per
month. Compute for his monthly gross earnings if he sells a total of P44,500 for the month.

## Annual Salary P132,000

Monthly salary = = = P11,000
12 mos. 12 mos.

## BUSMATH 01 | Business Math 1

Commission:
P10,000 x 0.01 = P100
Excess = P24,500
P10,000 x 0.02 = P200
P 4,500 x 0.04 = P180

## Gross Earnings = Basic Monthly Salary + Commission + Allowance

= P11,000 + P480 + P1,000
= P12,480

3. Candice is a sales manager receiving a monthly salary of P17,000, a commission of 5% on her sales, and a
monthly transportation allowance of P5,000. She is also given an override of 1% on her mens sales. For the
month of August, Candice sold a total of P100,000. Her men sold a total of P300,000. Compute for her gross
earnings for the month.

## Gross Earnings = Basic Monthly Salary + Commission + Override + Allowance

= P17,000 + (P100,000 x 0.05) + (P300,000 x 0.01) + P5,000
= P17,000 + P5,000 + P3,000 + P5,000
= P30,000

-End-

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