SENIOR

Business Math
0
HIGH
SCHOOL

Computing Down Payment, Gross Module

Balance and Current Increased Balance 2
Quarter 2
Business Math
Quarter 2 – Module 2: Computing Down Payment, Gross Balance and Current
Increased Balance
First Edition, 2020

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Published by the Department of Education Division of Pasig City

Development Team of the Module

Writer: Zara Jane D. Astete
Editors: Nenet M. Peñaranda
Reviewers: Carmelita B. Peralta
Layout Artist: Clifchard D. Valente
Management Team: Ma. Evalou Concepcion A. Agustin
OIC-Schools Division Superintendent
Carolina T. Rivera, Ed. D.
OIC-Assistant Schools Division Superintendent
Victor M. Javeña, Ed. D.
Chief - School Governance and Operations Division
OIC – Chief Curriculum Implementation Division
Education Program Supervisors
Librada L. Agon, Ed. D., EPP/TLE
Liza A. Alvarez, Science
Bernard R. Balitao, Araling Panlipunan
Joselito E. Calios, English
Norlyn D. Conde, Ed. D., MAPEH
Wilma Q. Del Rosario, LRMS
Ma. Teresita E. Herrera, Ed. D., Filipino
Perlita M. Ignacio, Ph. D., ESP/SPED
Dulce O. Santos, Ed. D., Kinder/MTB
Teresita P. Tagulao, Ed. D., Mathematics

Printed in the Philippines by Department of Education – Division of Pasig City

Business SENIOR
HIGH

Math
SCHOOL

Module

2
Quarter 2
Computing Down Payment,
Gross Balance and Current
Increased Balance
Introductory Message

For the facilitator:

Welcome to the Business Math for Senior High School Module on Computing Down
Payment, Gross Balance and Current Increased Balance!

This module was collaboratively designed, developed and reviewed by educators

from Schools Division Office of Pasig City headed by its Officer-In-Charge Schools
Division Superintendent, Ma. Evalou Concepcion A. Agustin in partnership with
the Local Government of Pasig through its mayor, Honorable Victor Ma. Regis N.
Sotto.
The writers utilized the standards set by the K to 12 Curriculum using the Most
Essential Learning Competencies (MELC) while overcoming their personal, social,
and economic constraints in schooling.

This learning material hopes to engage the learners into guided and independent
learning activities at their own pace and time. Further, this also aims to help
learners acquire the needed 21st century skills especially the 5 Cs namely:
Communication, Collaboration, Creativity, Critical Thinking and Character while
taking into consideration their needs and circumstances.

In addition to the material in the main text, you will also see this box in the body of
the module:

Notes to the Teacher

This contains helpful tips or strategies
that will help you in guiding the learners.

As a facilitator you are expected to orient the learners on how to use this module.
You also need to keep track of the learners' progress while allowing them to
manage their own learning. Moreover, you are expected to encourage and assist the
learners as they do the tasks included in the module.
For the learner:

Welcome to the Business Math Module on Computing Down Payment, Gross

Balance and Current Increase Balance!

The hand is one of the most symbolized part of the human body. It is often used to
depict skill, action and purpose. Through our hands we may learn, create and
accomplish. Hence, the hand in this learning resource signifies that you as a
learner is capable and empowered to successfully achieve the relevant
competencies and skills at your own pace and time. Your academic success lies in
your own hands!

This module was designed to provide you with fun and meaningful opportunities
for guided and independent learning at your own pace and time. You will be
enabled to process the contents of the learning material while being an active
learner.

This module has the following parts and corresponding icons:

Expectation - These are what you will be able to know after completing the
lessons in the module

Pre-test - This will measure your prior knowledge and the concepts to be
mastered throughout the lesson.

Recap - This section will measure what learnings and skills that you
understand from the previous lesson.

Lesson- This section will discuss the topic for this module.

Activities - This is a set of activities you will perform.

Wrap Up- This section summarizes the concepts and applications of the
lessons.

Valuing-this part will check the integration of values in the learning

competency.

Post-test - This will measure how much you have learned from the entire
module.
 EXPECTATION
At the end of the learning module, you are expected to:

1. Compute down payment, gross balance and current increased

balance.

PRETEST

Direction: Write the letter of the correct answer.

Ian chose to have a brand new car for his graduation. His father
bought it worth Php 692,000 which would be financed by a car loan
from bank. Their agent told them that the required down payment was
30% of the unit price.
1. How much was the down payment paid by the buyer?
a. Php 207,600 c. Php 276,000
b. Php 270,600 d. Php 273,600
2. How much was the gross balance or the amount to be financed
by the bank?
a. Php 416,000 c. Php 448,400
b. Php 421,400 d. Php 484,400
3. How much is the current increased balance if the bank charges
an interest rate of 27.5%?
a. Php 530,400 c. Php 617,610
b. Php 537,285 d. Php 671,160

Marc purchased a town house unit whose total contract price is

Php 980,200. He paid Php 30,000 as reservation fee and a down
payment of 20% of the unit price which is to be deducted from the
total contract price. The balance will be paid through a housing loan
from a bank.
4. How much was the gross balance or the amount to be financed
by the bank?
a. Php 716,457 c. Php 754,160
b. Php 745,160 d. Php 764,150
5. How much is the current increased balance if the bank charges
an interest rate of 25%?
a. Php 924,700 c. Php 942,700
b. Php 927,400 d. Php 947,200
 RECAP

A. Tell whether the problems below illustrate a straight commission,

salary plus commission or graduated commission.

1. An agent received 5% commission on his total sales. If he sold

Php 50,000 worth of products. How much is his commission for
selling books?
2. Sheila receives a salary of Php 15,000 plus 6% commission on her
total sales. Find her earning for this month if her sales were
Php 76,555.10?
3. Garry gets a 4% commission on the first Php 60,000 worth of goods
sold by him each month, an additional 3% on excess of Php 60,000
and 1% on excess of Php 100,000. Find his gross earning if his
total sales for the month were Php 350,000?
4. Chia, an online seller, receives an 6% commission on the first
Php 30,000.00 she sells, and 4% on product over Php 30,000.00.
If Chia sold worth Php 90,000.00. How much is her total
commission?
5. Grace earns a 10% commission on resale product. If she resells
Php 35,000 worth of products, how much commission will she
earn?

LESSON

Consider the problem.

Sunshine is a sales agent. She was able to sell a brand new car
worth Php 732,000 this month. Her buyer paid a 20% down payment
of the net price. The balance will be paid through bank financing.

Down payment is the first payment that one makes when one buys
something with an agreement to pay the rest later.

Down Payment = Unit Price x Down Payment Rate

= Php 732,000 x 0.20
= Php146,400

Gross balance or book balance 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 measure of what the bank has on hand before adding or subtracting
regulatory obligations and items that will soon appear on its books.
This is the term used by banks to describe the amount 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”.

Gross balance (Amount to Be Financed through Bank)

Gross balance = Unit Price – Down Payment
= Php 732,000 – Php 146,400
= Php 585,600

Current increased balance refers 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 time.

How much is the current increased balance if the bank charges

an interest rate of 20.25%?

Current Increased Balance = Gross Balance (1 + Interest Rate)

= Php 585,600 (1 + .2025)
= Php 585,600 (1.2025)
= Php 704,184

Example: Jen purchases using her credit card with a current total
amount due of Php 65,234.66. The minimum required payment is 5%
of the total amount due. As of this month’s cut off date, if she only
pays the minimum required payment, a financing charge of 3.5% of
the remaining balance will be charged to the next bill. Assuming she
didn’t use her credit card for the next 3 months and the financing
charge of 3.5% is charged every billing period, show Jen’s expected
monthly bill for the next 3 months.

Solution: Jen’s current bill is Php 65,234.66, so the minimum

required payment is 0.05 ( Php 65,234.66) = Php3,261.73

So, the expected amount on her 1st month bill will be

= (Php65,234.66 – Php 3,261.73) + 0.035 (Php65,234.66 -

Php3,261.73)
= Php 61,972.93 + 0.035(Php 61,972.93)
= 1.035(Php 61,972.93)
= Php 64,141.98

For the 2nd month, the required payment will be

0.05(Php 64,141.98) = Php 3,207.10
Her 2nd month bill will be
= (Php 64,141.98 – Php 3,207.10) + 0.035(Php64,141.98 - 3,207.10)
= Php 60,934.88 + 0.035(Php 60,934.88)
= 1.035(Php 60,934.88)
= Php63,067.60
For the 3rd month, the required payment will be
0.05(Php 63,067.60) = Php3,153.38

Her 3rd month bill will be

= (Php 63,067.60– Php3,153.38) + 0.035(Php63,067.60– Php3,153)

= Php 59,914.22 + 0.035(Php 59,914.22)
= 1.035(Php 59,914.22)
= Php 62,011.22

As you can see, Jen has already been paid (3,261.73 + 3,207.10
+ 3,153.38) = Php9,622.21 but only (Php 65,234.66 – Php 62,011.22)
= Php3,223.44 has been deducted so far from the original debt of
P65,234.66. Hence, every time she keep paying only the required
minimum payment, more money goes to the interest payments rather
than payment of the actual debt because there is a finance charge of
3.5%.
Therefore, for the next 3 months, Jen’s current increased
balance will become Php62,011.22.

ACTIVITIES
Solve the following problems

1. Edwin was able to sell a condominium worth Php 2,350,000 which

would be financed by a bank or through PAG-IBIG. He gave his
buyer a discount of Php 50,000. He told his buyer that the required
down payment was 20% of the net price.
a. How much was the down payment paid by the buyer?
b. How much was the gross balance or the amount to be
financed by the bank or PAG-IBIG?
c. How much is the current increased balance if the bank
charges an interest rate of 15%?
2. Dave purchased a town house unit whose total contract price is
Php1,020,300. He paid Php10,000 as reservation fee and a down
payment of 25% of the unit price which is to be deducted from the
total contract price. The balance will be paid through a housing
loan from a bank.
a. How much was the gross balance or the amount to be
financed by the bank?
 b. How much is the current increased balance after if the bank
charges an interest rate of 10.25%?

WRAP UP

Fill in the blanks.

1. _________ refers to the total amount of money a bank
has on deposit before adjusting for uncleared checks or
deposits, as well as reserve requirements.
2. __________ is the first payment that one makes when one
buys something with an agreement to pay the rest later.
3. __________ refers 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 time.

VALUING
Credit card is a quick source of fund especially in an
“absolute” emergency but remember it also encourages us to
buy unnecessary “wanted” purchases.

What do you think are the advantages and disadvantages

of having credit cards?

POST-TEST

Direction: Write the letter of the correct answer.

Rey was able to sell a car whose total contract price is

Php810,000. He paid Php10,000 as reservation fee and a down
payment of 20% from the unit price which is to be deducted from the
total contract price. The balance will be paid through a car loan from
a bank.

1. How much was the gross balance or the amount to be financed

by the bank?
a. Php 628,000 c. Php 648,000
b. Php 638,000 d. Php 658,000
 2. How much is the current increased balance if the bank charges
an interest rate of 12.5%?
a. Php 706,500 c. Php 729,000
b. Php 717,750 d. Php 740,250

Camba Family was able to buy a house and lot worth Php4,250,000
which would be financed through PAG-IBIG. Their agent gave them a
discount of Php100,000. The required down payment was 25% of the
net price.
3. How much was the down payment paid by the buyer?
a. Php1,037,500 c. Php1,073,500
b. Php1,062,500 d. Php1,602,500
4. How much was the gross balance or the amount to be financed
through PAG-IBIG?
a. Php2,547,500 c. Php3,087,500
b. Php3,076,500 d. Php3,112,500
5. How much is the current increased balance if it charges an
interest rate of 27%?
a. Php3,235,325 c. Php3,087,500
b. Php3,907,155 d. Php3,952,875

KEY TO CORRECTION

5. c 5. Straight 5. d
4. c 4. Graduated 4. d
3. c 3. Graduated 3. a
2. d 2. Salary Plus 2. b
1. a 1. Straight 1. b
A. A. A.
PRETEST RECAP POSTTEST
 5. Php 832,635.56
4. Php 755,225
Increased Balance
3. Php 2,116,000
3. Current
2. Php 1,840,000
2. Down Payment
1. Php 460,000
1. Gross Balance
A.
A.
Activities
WRAP UP

R E F E R E N CE S
Books:

1. Commission on Higher Education (2016). Teaching Guide for Senior

High School Business Mathematics

2. I. Solano (2020), Business Math (Second Edition), DIWA Learning

System

3. N. Lopez-Mariano (2016). Business Mathematics, Rex Book Store,

Inc.

Web:

1. https://psu.instructure.com/courses/1806581/pages/chapter-1-advantages-and-

disadvantages-of-credit-cards