Gen Math Q2 Module 6

11
www.shsph.blogspot.com
General
Mathematics
Quarter 2 – Module 6:
Business and Consumer Loans
General Mathematics – Grade 11
Alternative Delivery Mode
Quarter 2 – Module 6: Business and Consumer Loans
First Edition, 2020
Republic Act 8293, section 176 states that: No copyright shall subsist in any work
of the Government of the Philippines. However, prior approval of the government agency or
office wherein the work is created shall be necessary for the exploitation of such work for a
profit. Such agency or office may, among other things, impose as a condition the payment of
royalties.
Borrowed materials (i.e., songs, stories, poems, pictures, photos, brand names,
trademarks, etc.) included in this module are owned by their respective copyright holders.
Every effort has been exerted to locate and seek permission to use these materials from
their respective copyright owners. The publisher and authors do not represent nor claim
ownership over them.
Published by the Department of Education

Secretary: Leonor Magtolis Briones
Undersecretary: Diosdado M. San Antonio
Development Team of the Module

Writer: Steve G. Zacal, PhD
Editors: Royland Y. Estremos
Reviewers: Joy B. Caoile
Illustrator: Name
Layout Artist: Name
Management Team: Reynaldo M. Guillaena, CESO V
Emma A. Camporedondo, CESE
Basilio P. Mana-ay Jr., CESE
Alma C. Cifra, EdD.
Aris B. Juanillo, PhD
Antonio A. Apat
Printed in the Philippines by ________________________
Department of Education – Region XI Davao City Division
Office Address: DepED Davao City Division, E. Quirino Ave.,

Davao City, Davao del Sur, Philippines
Telefax: (082) 224-0100
E-mail Address: [email protected]
11
General
Mathematics
Quarter 2 – Module 6:
Business and Consumer Loans
Introductory Message
For the facilitator:
Welcome to the General Mathematics – Grade 11 Alternative Delivery Mode (ADM)

Module on Business and Consumer Loans!
This module was collaboratively designed, developed, and reviewed by educators

both from public and private institutions to assist you, the teacher, or facilitator in
helping the learners meet the standards set by the K to 12 Curriculum while
overcoming their personal, social, and economic constraints in schooling.
This learning resource hopes to engage the learners into guided and independent
learning activities at their own pace and time. Furthermore, this also aims to help
learners acquire the needed 21st-century skills 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 learning. Furthermore, you are expected to encourage and assist the
learners as they do the tasks included in the module.
2
For the learner:
Welcome to the General Mathematics – Grade 11 Alternative Delivery Mode (ADM)

Module on Business and Consumer Loans!
The hand is one of the most symbolized parts 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 resource while being an active
learner.
This module has the following parts and corresponding icons:
What I Need to Know This will give you an idea of the skills or
competencies you are expected to learn in
the module.
What I Know This part includes an activity that aims to

check what you already know about the
lesson to take. If you get all the answers
correct (100%), you may decide to skip this
module.
What’s In This is a brief drill or review to help you link

the current lesson with the previous one.
What’s New In this portion, the new lesson will be

introduced to you in various ways such as a
story, a song, a poem, a problem opener, an
activity, or a situation.
What is It This section provides a brief discussion of

the lesson. This aims to help you discover
and understand new concepts and skills.
What’s More This comprises activities for independent

practice to solidify your understanding and
skills of the topic. You may check the
answers to the exercises using the Answer
Key at the end of the module.
What I Have Learned This includes summary of what you learned

from the lesson.
What I Can Do This section provides an activity that will

help you transfer your new knowledge or
skill into real-life situations or concerns.
3
Assessment This is a task which aims to evaluate your
level of mastery in achieving the learning
competency.
Additional Activities In this portion, another activity will be given

to you to enrich your knowledge or skill of
the lesson learned. This also tends the
retention of learned concepts.
Answer Key This contains answers to all activities in the

module.
At the end of this module you will also find:
References This is a list of all sources used in

developing this module.
The following are some reminders in using this module:
1. Use the module with care. Do not put unnecessary mark/s on any part of
the module. Use a separate sheet of paper in answering the exercises.
2. Don’t forget to answer What I Know before moving on to the other activities
included in the module.
3. Read the instruction carefully before doing each task.
4. Observe honesty and integrity in doing the tasks and checking your
answers.
5. Finish the task at hand before proceeding to the next.
6. Return this module to your teacher/facilitator once you are through with it.
If you encounter any difficulty in answering the tasks in this module, do not
hesitate to consult your teacher or facilitator. Always bear in mind that you are
not alone.
We hope that through this material, you will experience meaningful learning
and gain a deep understanding of the relevant competencies. You can do it!
4
What I Need to Know
This module was designed and written with you in mind. It is here to help you
master the concept of Stocks and Bonds. The scope of this module permits it to be
used in many different learning situations. The language used recognizes the
diverse vocabulary level of students. The lessons are arranged to follow the
standard sequence of the course. But the order in which you read them can be
changed to correspond with the textbook you are now using.
The module focuses on:

• Lesson 1 – Business and Consumer Loans
After going through this module, you are expected to:

1. illustrate business and consumer loans;
2. distinguish between business and consumer loans; and
3. solve problems involving business and consumer loans (amortization,
mortgage).
5
What I Know
Directions: Identify whether the given situation is business or consumer

loan.
Mr. Retutas wants to borrow money from his friend. He plans …

________________1. to buy a new cellular phone for his loved ones
________________2. to buy a new cellular phone for his e-load business
________________3. to use it for the improvement of his house

________________4. to use it for the extension of his sari-sari store
________________5. to use it to finance his study
________________6. to use it to start a computer shop

________________7. to buy an additional equipment for his business
________________8. to buy furniture for his new house
________________9. to use it to finance the needs of his sisters

________________10. to use it for the construction of his boarding house
6
Lesson
Business and Consumer
1 Loans
Most people nowadays are engaged in borrowing money to buy things
for their own needs or to start a business. Loans are very common to all
people to address their financial needs. There are people or corporations in
our society that allow every individual to borrow a certain amount with an
agreed interest at a given period of time such as bank loan.
What’s In
Let us recall some problems that will help us to understand the

concept of business and consumer loans.
Let’s begin!
Read and answer the given problem.
Notes to the Teacher

This module is intended for the learners to work
independently. It will provide learners with the opportunities to
develop the necessary skills to master the competencies. The
learners will use a separate sheet of paper for their answers in
every activity.
7
Your parents have a plan to apply for a loan to purchase the computer
set you needed for your online classes. Your parents were offered by the two
lending corporations in your barangay. They shared the following
information:
Corporation A: A monthly payment of Php 1,250.00 for 3 years.
Corporation B: A monthly payment of Php 800.00 for 5 years.
Which of the two corporation offers should your parents take? Why?
Points 1 3 5
Lack of understanding Limited understanding of A clear understanding of
of the concept and the concept and show the concept and use logical
Description attempt to show thinking skills to conclude. thinking to conclude.
thinking skills.
What’s New
Read the situations below and answer the questions that follow.
Situation 1:
Jay wants to borrow money from his friend. He plans to buy a new
cellular phone for his mother.
Situation 2:
May Ann wants to borrow money from her friend. She plans to buy a
new cellular phone for her e-load business.
Questions:
1. What is a common scenario in the two situations?

2. Why did Jay borrow money?
3. Why did May Ann borrow money?
8
What is It
Definition of Terms
A Business Loan is a type of loan that is offered to a person or
business establishment to fund their financial needs for the extension of
their business or other business-related expenses.
Examples:
1. Mrs. Nable plans to have an online business. She decided to
borrow a certain amount from the BDO Network bank to install the
internet and to buy a laptop.
2. Ms. Rio has a computer shop. She owns 3 computers. She wants
to put 2 more computers in her shop so she decided to borrow
some money from her friend.
3. Mr. Magno wants to borrow money for the expansion of his

restaurant.
Consumer Loan is another type of loan that offered to a person to

fund their personal needs, family needs, or any household related finances.
Examples:
1. Mr. Cruz wants to borrow money to buy a new set of computers for
the education of his son.
2. Ms. Yen decided to continue her studies. She plans to borrow some
money from the bank to finance this plan.
3. John wants to borrow money from the bank to have some

improvement in his house.
Collateral is a property or asset pledged by the borrower to secure

the loan. It may take the form of real estate or other kinds of assets,
depending on the purpose of the loan. It acts as a form of protection for the
lender.
There are two types of collateral. It can be tangible assets (physical

items that can be seen or touched) or intangible assets (items that can’t be
seen or touched).
9
Examples of tangible assets
1. Buildings
2. Land
3. Equipment
4. Vehicles
Examples of intangible assets
1. Investment Funding
2. Payment rights
3. Copyrights and small business trademarks
4. Account Receivable
The Term of Loan is the time to pay the whole amount of the loan.
Amortization Method is a method of paying a loan (principal and

interest) on an installment basis, usually of equal amounts at regular
intervals.
Chattel Mortgage is a loan arrangement in which an item of the

movable personal property acts as security for a loan.
Outstanding Balance is any remaining debt at a specified time.
Example 1: A Senior High School teacher plans to borrow money to buy

gadgets for online classes. He decided to loan an amount of ₱50,000.00 from
a bank at 7.5% compounded monthly. If it will be amortized by equal
payment at the end of each month for 1 year, then find the periodic payment
and prepare an amortization schedule.
Given:
P = ₱50,000.00 𝑖 (12) = 0.075

𝑚 = 12 (Compounded monthly) 𝑛 = (𝑚)(𝑡) = (12)(1) = 12
𝑡 = 1 𝑦𝑒𝑎𝑟
𝑖 (12) 0,075
𝑗= = = 0.00625 (use 6 decimal places if possible)
𝑚 12
Problem: Find the Regular Payment (R).
To solve this problem, we will use the formula of the Present Value of
an Ordinary Annuity and derive for the formula of Regular Payment (R).
10
Note: Present Value of an Ordinary Annuity is being used because the
payment is at the end of each month.
Derivation of R
1 − (1 + 𝑗)−𝑛 Present Value of Ordinary
𝑃=𝑅
𝑗 Annuity Formula
1 − (1 + 𝑗)−𝑛
𝑃 𝑅 1−(1+𝑗)−𝑛
𝑗 Dividing to both
= 𝑗
1 − (1 + 𝑗)−𝑛 1 − (1 + 𝑗)−𝑛
𝑗 𝑗 sides of the equation
𝑃
𝑅= Simplify to get the Regular
1 − (1 + 𝑗)−𝑛
𝑗 Payment formula
Solution:
𝑃
𝑅=
1 − 1 + 𝑗)−𝑛
( Regular payment formula
𝑗
₱50,000.00
𝑅= Substitute the given values
1 − (1 + 0.00625)−12
0.00625
₱50,000.00
𝑅= Add the expressions inside the quantity
1 − (1.00625)−12
1+0.00625 = 1.00625
0.00625
₱50,000.00 Simplify the expression (1.00625)−12 to
𝑅=
1 − 0.927960
get 0.927960 (Note: Use 6 decimal places)
0.00625
₱50,000.00 Subtract 1 by 0.927960 to get 0.07204
𝑅=
0.07204 (1 – 0.927960 = 0.07204)
0.00625
0.07204
₱50,000.00 Simplify the expression to get
0.00625
𝑅=
11.5264 11.5264 (Divide 0.07204 and 0.00625)
Divide 50,000 and 11.5264 to get

𝑅 = ₱4,337.87 ₱4,337.87
The periodic payment is ₱4,337.87
11
Now, we already know the periodic payment then we will create an
amortization schedule.
Amortization Schedule
Amount paid The
Periodic Interest at
to the outstanding
Payment at 7.5%
principal at balance at the
Period the end of compounded
the end of end of each
each month monthly
each month month
(A) (B)
(C) (D)
0 ₱ 50,000.00
1 ₱4,337.87 ₱312.50 ₱4,025.37 45,974.63
2 4,337.87 287.34 4,050.53 41,924.10
3 4,337.87 262.03 4,075.84 37,848.26
4 4,337.87 236.55 4,101.32 33,746.94
5 4,337.87 210.92 4,126.95 29,619.99
6 4,337.87 185.12 4,152.75 25,467.24
7 4,337.87 159.17 4,178.70 21,288.54
8 4,337.87 133.05 4,204.82 17,083.72
9 4,337.87 106.77 4,231.10 12,852.62
10 4,337.87 80.33 4,257.54 8,595.08
11 4,337.87 53.72 4,284.15 4,310.93
12 4,337.87 26.94 4,310.93 0
Total ₱52,054.44 ₱2,054.44 ₱50,000.00
To understand how to create this schedule follow the steps provided.

Period 1 to Period 3 will serve as examples and you continue Period 4 to
period 12 and compare your answer in the table.
Amount paid The

to the outstanding
Payment at 7.5%
each month monthly
each month month
(A) (B)
(C) (D)
0 ₱ 50,000.00 𝑫𝟎
1 ₱4,337.87 ₱312.50 ₱4,025.37 45,974.63
𝑫𝟏
STEP 1 STEP 2 STEP 3 STEP 4
𝑨𝟏 𝐼 = 𝑫𝟎 𝑟𝑡 𝑪𝟏 = 𝑨𝟏 − 𝑩𝟏 𝑫𝟏 = 𝑫𝒐 − 𝑪𝟏
12
Steps to create the amortization schedule
Step 1: For Column A (Periodic Step 2: For Column B (Interest at 7.5%

payment at the end of each compounded monthly).
month).
Use the interest formula ( 𝑰 = 𝑫𝒑 𝒓𝒕)
Write the computed Regular
where
payment which is ₱4,337.87 from
Period 1 to Period 12. I = interest
𝑫𝒑 = Principal amount or the
Periodic Payment
at the end of outstanding balance per period.
Period r = rate
each month
(A) t = number of months in one conversion
0 period divided number of months in a
1 ₱4,337.87 year.
2 4,337.87 Example:
3 4,337.87 Period 1
4 4,337.87 1
5 4,337.87 𝐼 = 𝑫𝟎 𝑟𝑡 = 50,000(0.075) ( ) = 312.50
12
6 4,337.87 Period 2
7 4,337.87 1
8 4,337.87 𝐼 = 𝑫𝟏 𝑟𝑡 = 45,974.63(0.075) ( ) = 287.34
12
9 4,337.87
Period 3
10 4,337.87
1
11 4,337.87 𝐼 = 𝑫𝟐 𝑟𝑡 = 41,924.10(0.075) ( ) = 262.03
12 4,337.87 12
Step 3: For Column C (Amount Step 4: For Column D (Outstanding

paid to the principal at the end of balance at the end of each month).
each month).
Outstanding Balance = Previous
Amount paid = Periodic - Interest outstanding balance – Amount paid
𝑪𝒑 = 𝑨𝒑 - 𝑩𝒑 𝑫𝑷 = 𝑫𝑷−𝟏 − 𝑪𝑷
NOTE: p is number of period NOTE: p is number of period
Example: Example:
Period 1 (𝑪𝟏 ) Period 1 𝑫𝟏 = 𝐷𝑜 − 𝐶1
𝐴𝑚𝑜𝑢𝑛𝑡 𝑝𝑎𝑖𝑑 = 4,337.87 − 312.50 𝐷1 = 50,000 − 4,025.37
𝐴𝑚𝑜𝑢𝑛𝑡 𝑝𝑎𝑖𝑑 = 4,025.37 𝐷1 = 45,974.63
Period 2 (𝑪𝟐 ) Period 2 𝑫𝟐 = 𝐷1 − 𝐶2

𝐴𝑚𝑜𝑢𝑛𝑡 𝑝𝑎𝑖𝑑 = 4,337.87 − 287.34 𝐷2 = 45,974.63 − 4,050.53
𝐴𝑚𝑜𝑢𝑛𝑡 𝑝𝑎𝑖𝑑 = 4,050.53 𝐷2 = 41,924.10
Period 3 (𝑪𝟑 ) Period 3 𝑫𝟑 = 𝐷2 − 𝐶3

𝐴𝑚𝑜𝑢𝑛𝑡 𝑝𝑎𝑖𝑑 = 4,337.87 − 262.03 13 𝐷3 = 41,924.10 − 4,075.84
𝐴𝑚𝑜𝑢𝑛𝑡 𝑝𝑎𝑖𝑑 = 4,075.84 𝐷3 = 37,848.26
Example 2. (Chattel mortgage). Steven borrowed ₱1,400,000.00 for the

purchase of a car. If his monthly payment is ₱35,000.00 on a 5-year
mortgage, find the total amount of interest.
Given: P = ₱1,400,000.00 t = 5 years mortgage
R = ₱35,000.00
Solution:
Number of
Total Amount Regular Number of
= months in a x
Paid Payment x years
year
𝑇𝑜𝑡𝑎𝑙 𝐴𝑚𝑜𝑢𝑛𝑡 𝑃𝑎𝑖𝑑 = (35,000.00)(12)(5)

𝑇𝑜𝑡𝑎𝑙 𝐴𝑚𝑜𝑢𝑛𝑡 𝑃𝑎𝑖𝑑 = ₱𝟐, 𝟏𝟎𝟎, 𝟎𝟎𝟎. 𝟎𝟎
To get the Total Interest the formula is

𝑇𝑜𝑡𝑎𝑙 𝐼𝑛𝑡𝑒𝑟𝑒𝑠𝑡 = 𝑇𝑜𝑡𝑎𝑙 𝐴𝑚𝑜𝑢𝑛𝑡 𝑃𝑎𝑖𝑑 − 𝑃𝑟𝑖𝑛𝑐𝑖𝑝𝑎𝑙 𝐴𝑚𝑜𝑢𝑛𝑡
𝑇𝑜𝑡𝑎𝑙 𝐼𝑛𝑡𝑒𝑟𝑒𝑠𝑡 = ₱2,100,000.00 − ₱1,400,000.00
𝑇𝑜𝑡𝑎𝑙 𝐼𝑛𝑡𝑒𝑟𝑒𝑠𝑡 = ₱𝟕𝟎𝟎, 𝟎𝟎𝟎. 𝟎𝟎
Therefore, the total amount of interest is ₱𝟕𝟎𝟎, 𝟎𝟎𝟎. 𝟎𝟎
Example 3. A house and lot were sold for ₱2,200,000.00. If the bank
required a 30% down payment, find the amount of the mortgage.
Given:
Cash Price = ₱2,200,000.00
Down payment rate = 30% = 0.30

Solution:
Down payment = Cash Price x Down payment rate
= ₱2,200,000.00 (0.30)
= ₱660,000.00
Amount of Loan = Cash Price - Down payment
= ₱2,200,000.00 – ₱660,000.00
14
= ₱1,540,000.00
Therefore, the mortgage amount is ₱1,540,000.00
Example 4. Mr. Zacal bought a house and lot at Apo Highlands worth
₱2,500,000.00. He paid ₱300,000.00 as a down payment. He plans to
amortize the remaining amount by paying monthly for 15 years. If the
interest rate is 9% convertible monthly, then find:
(a) The monthly payment.
(b) Total interest paid.
Solution:
(a) The monthly payment or regular payment
Given:
Cash Price = ₱2,500,000.00 𝑖 (12) = 9% = 0.09 𝑡 = 15 𝑦𝑟𝑠
Down payment = ₱300,000.00 𝑚 = 12 (monthly)

𝑖 (12) 0.09
𝑗= = = 0.0075 𝑛 = 𝑚𝑡 = (12)(15) = 180
𝑚 12
In solving the monthly payment or regular payment, we will use the

Regular Payment Formula (R) which is
𝑃
𝑅=
1 − (1 + 𝑗)−𝑛
𝑗
You have noticed that the Present Value (P) is not given. So, we need
to find first the value of P using the formula
Present Value = Cash Price – Down payment
= ₱2,500,000.00 – ₱300,000.00
P = ₱2,200,000.00
Now, the monthly payment or regular payment can be solved.
𝑃
𝑅= Regular payment formula
1 − 1 + 𝑗)−𝑛
(
𝑗
₱2,200,000.00
𝑅= Substitute the given values
1 − (1 + 0.0075)−180
0.0075
15
₱2,200,000.00 Add the expressions inside the quantity

𝑅=
1 − (1.0075)−180 1 + 0.0075 = 1.0075
0.0075
₱2,200,000.00 Simplify the expression (1.0075)−180 to
𝑅=
1 − 0.260549 get 0.260549 (Note: Use 6 decimal places)
0.0075
₱2,200,000.00 Subtract 1 by 0.260549 to get 0.739451
𝑅=
0.739451 (1 – 0.260549 = 0.739451)
0.0075
0.739451
₱ 2,200,000.00 Simplify the expression to get
𝑅= 0.0075
98.593467 98.593467 (Divide 0.739451 and 0.0075)
Divide 2,200,000.00 and 98.593467 to

𝑅 = ₱22,313.85
get ₱22,313.85
(b) Total Interest Paid
Given:
P = ₱2,200,000.00 R = ₱22,313.85 n = 180
First, we need to get the total payments
Total payments = R x n
Total payments = (₱22,313.85) (180)
Total payments = ₱4,016,493.00
Secondly, we will get the total interest paid using the formula
Total interest paid = Total payments – Present value
Total interest paid = ₱4,016,493.00 – ₱2,200,000.00
Total interest paid = ₱1,816,493.00
Therefore, the total interest paid is ₱1,816,493.00
16
What’s More
Part I. Identify whether the following illustrates a business loan or a

consumer loan.
1. Mr. Velasco decided to take his family for a vacation. He decided to
apply for a loan to cover all the expenses.
2. Sara decided to purchase a car. She got a loan worth

₱1,800,000.00.
3. Mr. Dela Cruz wants to borrow money from the bank to buy new
equipment for his bakeshop.
4. Ms. Miles owns a cell phone repair shop. She plans to put another
branch beside the Gaisano South Mall. To finance her expenses,
she decided to have a loan worth ₱50,000.00
5. Ms. Sumugat renovates her house for ₱50,0000.00. This was

made possible because of the approval of her loan.
Part II. Answer the following problems.
1. If a car loan of ₱1,250,000.00 requires a 15% down payment. How

much is the mortgage?
2. Mario borrowed ₱1,500,000.00 for the purchase of a car. If his

monthly payment is ₱20,000.00 on a 10-year mortgage, then how
much is the total amount of interest?
3. Jane borrowed ₱120,000.00 in the bank to finance her studies.

The amount is to be repaid in 2 years at 5% convertible monthly.
How much is her monthly payment?
4. A business loan worth ₱400,000 is to repay in quarterly

installment for 3 years. How much is the quarterly payment if
money is worth 10% converted quarterly?
17
What I Have Learned
I have learned that…

✓ A Business loan is a loan intended for business-related expenses
✓ A Consumer loan is a loan intended for personal purposes.
✓ Collateral is an asset pledged by the borrower to secure the loan.
✓ Amortization Method was a method of paying a loan (principal and
interest) on an installment basis.
✓ Chattel Mortgage is an arrangement in which an item of the movable
personal property acts as security for a loan.
Formulas:
Regular payment or monthly payment

𝑃
𝑅=
1 − (1 + 𝑗)−𝑛
𝑗
Interest
𝐼 = 𝑃𝑟𝑡
Amount paid
Amount paid = Periodic payment - Interest
Outstanding Balance
Outstanding Balance = Previous outstanding balance – Amount paid

𝑫𝑷 = 𝑫𝑷−𝟏 − 𝑪𝑷
where p is number of period (p > 0)
Total Amount Paid
Total Amount paid = Regular payment x No. of months in a year x No. of years
(Note: The number of month in a year is 12)
18
Total Interest
Total Interest = Total Amount Paid – Principal Amount

Total Interest = Total Payment – Present Value
Down Payment
Down Payment = Cash Price x Down Payment Rate
Amount of Loan or Mortgage Amount or Present Value
Amount Loan = Cash Price – Down Payment
Total Payment
Total Payment = Regular Payment x Number of Payments

Total Payment = (R)(n)
What I Can Do
Complete the table below using the given situation and answer the
questions that follow.
John loan an amount of ₱30,000.00 and to be paid for 5 years with an

interest rate of 10% compounded annually. The yearly amortization is
₱7,913.92.
A. How much is the amount of the loan? (Outstanding balance at period

0)
B. How much is the first annual payment?
C. For the second payment, how much goes to pay the interest?
D. For the second payment, how much goes to pay the principal?
E. For the fourth payment, how much goes to pay the interest?
F. How much is the outstanding balance after the 4th payment?
19
G. How much should be the entry in the outstanding balance after the
last payment?
H. How much is the total amount of payment?
I. How much is the total interest paid?
J. How much are the total payments for the principal? (Note: Sometimes
the result may differ because of the rounding off)
Amount paid The

to the outstanding
Payment at 10%
each year annually
each year year
0 (A)
1 (B) ₱3,000.00 ₱4,913.92 25,086.08
2 7,913.92 (C) (D) 19,680.77
3 7,913.92 1,968.07 5,945.85 13,734.92
4 7,913.92 (E) 6,540.43 (F)
5 7,913.92 719.45 7,194.47 (G)
(H) (I) (J)
Assessment
Multiple Choice. Choose the letter of the best answer. Write the chosen letter
on a separate sheet of paper.
1. It refers to the process of paying off a debt over time through regular
payments.
a. Collateral
b. Amortization
c. Business Loan
d. Consumer Loan
2. If a person wants to borrow money from a bank, he used his car to

secure his loan. This statement is an example of
a. Collateral
b. Amortization
c. Business Loan
20
d. Consumer Loan
3. Which of the following is an example of a tangible asset?

a. Trademarks
b. Copyrights
c. Patents
d. Stock
4. Ms. Cagape wants to borrow money from the bank to finance her
Masteral degree. This statement is an example of
a. Collateral
b. Amortization
c. Business Loan
d. Consumer Loan
5. Mr. Santos owns a hotdog food cart business. He wants to put

another food cart in a newly opened mall. He decided to have a loan
to establish a new business. This statement is an example of
a. Collateral
b. Amortization
c. Business Loan
d. Consumer Loan
Additional Activities
A loan amounting to ₱10,000.00 is to be paid annually for 4 years

with an interest rate of 5% compounded annually. The annual amortization
is ₱2,820.11. Prepare an amortization schedule.
21
22
What’s In What I know What I Have Learned
Corporation A. 1. Consumer Loan 1. Business Loan
2. Business Loan 2. Consumer Loan
Corporation A is less than 3. Consumer Loan 3. Collateral
Corporation B. 4. Business Loan 4. Amortization Method
5. Consumer Loan 5. Chattel Mortgage
(The explanation may vary) 6. Business Loan
7. Business Loan
8. Consumer Loan
9. Consumer Loan
10. Business Loan
What’s More What I Can Do Assessment
Part I A. ₱ 30,000.00 1. B
B. ₱ 7,913.92 2. A
1. Consumer Loan C. ₱ 2,508.61 3. D
2. Consumer Loan D. ₱ 5,405.31 4. D
3. Business Loan E. ₱ 1,373.49 5. C
4. Business Loan F. ₱ 7,194.49
5. Consumer Loan G. ₱ 0.02
Part II
H. ₱ 39,569.60
1. ₱ 1,062,500.00 I. ₱ 9,569.62
2. ₱ 900,000.00 J. ₱ 29,999.98
3. ₱ 5,264.58 Note: There is a difference for
4. ₱ 38,994.87 the answers of E and I
because of rounding off.
Answer Key
23
Additional Activities
Periodic Amount paid to
Interest at 7.5% Outstanding
Payment at the the principal at
compounded balance at the end
Period end of each the end of each
monthly of each month
month month
(B) (D)
(A) (C)
0 ₱ 10,000.00
1 2,820.11 500.00 2,320.11 7,679.89
2 2,820.11 383.99 2,436.12 5,243.77
3 2,820.11 262.19 2,557.92 2,685.85
4 2,820.11 134.29 2,685.82 0.03
Total 11,280.44 1,280.47 9,999.97
Note: There is a difference of 0.03 because of rounding off.
References
Department of Education – Bureau of Learning Resources. General

Mathematics: Learner’s Material Pasig City: Department of Education,
2016
Investopedia. “Collateral” Accessed June 7, 2020,
https://www.investopedia.com/terms/c/collateral.asp
Investopedia. “Chattel Mortgage” Accessed June 7, 2020
https://www.investopedia.com/terms/c/chattelmortgage.asp
Orlando A. Oronce, General Mathematics Quezon City: Rex Book Store, Inc.
(RBSI)., 2016
Ronnie O. Alejan, Guillermo B. Bonghanoy, and Elisa V. Veloria, General
Mathematics for Senior High School Malabon City: MUTYA Publishing
House, Inc., 2016.
What Efficient Market Theory Is, Morningstar, Inc., accessed June 3, 2020,
http://news.morningstar.com/classroom2/course.asp?docld=4495&p
age=2&CN=C
24
For inquiries or feedback, please write or call:
Department of Education - Bureau of Learning Resources (DepEd-BLR)
Ground Floor, Bonifacio Bldg., DepEd Complex

Meralco Avenue, Pasig City, Philippines 1600
Telefax: (632) 8634-1072; 8634-1054; 8631-4985
Email Address: [email protected] * [email protected]

Gen Math Q2 Module 6

Uploaded by

Copyright:

Available Formats

Gen Math Q2 Module 6

Uploaded by

Document Information

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Gen Math Q2 Module 6

Uploaded by

Copyright:

Available Formats

11

Published by the Department of Education

Development Team of the Module

Printed in the Philippines by ________________________

Department of Education – Region XI Davao City Division

Office Address: DepED Davao City Division, E. Quirino Ave.,

Welcome to the General Mathematics – Grade 11 Alternative Delivery Mode (ADM)

This module was collaboratively designed, developed, and reviewed by educators

Notes to the Teacher

Welcome to the General Mathematics – Grade 11 Alternative Delivery Mode (ADM)

This module has the following parts and corresponding icons:

What I Know This part includes an activity that aims to

What’s In This is a brief drill or review to help you link

What’s New In this portion, the new lesson will be

What is It This section provides a brief discussion of

What’s More This comprises activities for independent

What I Have Learned This includes summary of what you learned

What I Can Do This section provides an activity that will

Additional Activities In this portion, another activity will be given

Answer Key This contains answers to all activities in the

At the end of this module you will also find:

References This is a list of all sources used in

The following are some reminders in using this module:

What I Need to Know

The module focuses on:

After going through this module, you are expected to:

Directions: Identify whether the given situation is business or consumer

Mr. Retutas wants to borrow money from his friend. He plans …

________________2. to buy a new cellular phone for his e-load business

________________3. to use it for the improvement of his house

________________5. to use it to finance his study

________________6. to use it to start a computer shop

________________8. to buy furniture for his new house

________________9. to use it to finance the needs of his sisters

Let us recall some problems that will help us to understand the

Read and answer the given problem.

Notes to the Teacher

1. What is a common scenario in the two situations?

3. Mr. Magno wants to borrow money for the expansion of his

Consumer Loan is another type of loan that offered to a person to

3. John wants to borrow money from the bank to have some

Collateral is a property or asset pledged by the borrower to secure

There are two types of collateral. It can be tangible assets (physical

Examples of intangible assets

Amortization Method is a method of paying a loan (principal and

Chattel Mortgage is a loan arrangement in which an item of the

Outstanding Balance is any remaining debt at a specified time.

Example 1: A Senior High School teacher plans to borrow money to buy

P = ₱50,000.00 𝑖 (12) = 0.075

Problem: Find the Regular Payment (R).

Divide 50,000 and 11.5264 to get

To understand how to create this schedule follow the steps provided.

Amount paid The

STEP 1 STEP 2 STEP 3 STEP 4

Steps to create the amortization schedule

Step 1: For Column A (Periodic Step 2: For Column B (Interest at 7.5%

Step 3: For Column C (Amount Step 4: For Column D (Outstanding

Period 2 (𝑪𝟐 ) Period 2 𝑫𝟐 = 𝐷1 − 𝐶2

Period 3 (𝑪𝟑 ) Period 3 𝑫𝟑 = 𝐷2 − 𝐶3

Example 2. (Chattel mortgage). Steven borrowed ₱1,400,000.00 for the