Business Mathematics (2nd Quarter)

Question 1

a reduction from list price granted to buyers

Answer 1

trade discount

Question 2

basic percentage formula

Answer 2

P = BR
(Discount = List Price x Discount Rate)

Question 3

It could take the form of volume discounts for large purchases, dealer’s or distributor’s discounts or special discounts granted at the discretion of the seller

Answer 3

Trade discounts

Question 4

Trade discounts could either be a ____ or ____

Answer 4

• single discount
• a series of discounts

Question 5

Type of trade discount where a seller grant additional discounts other than the discount ordinarily given by him or her

Answer 5

Series of discounts

Question 6

Formula that is used for computing discounts

Answer 6

Basic percentage formula
P=BR

Question 7

The biggest loan one can have

Answer 7

Mortgage

Question 8

loan usually obtained for a hoist, a house and lot, or for machinery or equipment

Answer 8

Mortgage

Question 9

It is when you use your property as collateral for a loan from a financial institution

Answer 9

Mortgage loan

Question 10

It is required for most installment purposes. It is usually a certain percent of the purchase price

Answer 10

Down payment

Question 11

Involves payment of the purchase price for the property and interest on the loan

Answer 11

Property mortgage

Question 12

Other term for down payment

Answer 12

Buyer’s equity

Question 13

The term used for the installment payment on the loan

Answer 13

Amortization

Question 14

The schedule prepared showing the installment payments for the period of payment (called the term of the loan) is called?

Answer 14

Amortization table

Question 15

Formula for monthly payment

Answer 15

A= iP(1+i)^n / (1+i)^n -1

A= monthly payment
P= loan’s initial amount
i= monthly interest rate
n= total number of payments

Question 16

A table or chart showing each monthly payment on an amortizing loan indicating how much of each payment goes to interest and how much goes to principal

Answer 16

Amortization schedule

Question 17

They are generally paid commissions as incentives for increasing a firm’s sales

Answer 17

Salesmen, agents, and brokers

Question 18

Employees of the firm either paid on a straight commission basis or on salary plus commission basis

Answer 18

Salesmen

Question 19

Are generally not employees of the firm and paid commissions only

Answer 19

Agents and brokers

Question 20

They are generally paid overrides on the sales of the people under them

Answer 20

Managers and/or product managers

Question 21

It applies when a different commission rate is applied if a certain target is reached. It is basically an incentive for a sales agent to reach his or her goal

Answer 21

Override

Question 22

Formula for gross earnings

Answer 22

Gross earnings= Basic Salary + Commission

Question 23

These are given to people who have people under them doing the sales, in addition to their basic salary

Answer 23

Overrides

Question 24

Remember daw: Any allowance given a person is in addition to…?

Answer 24

1.basic salary
2. Commission
3. Override

(See Transportation allowance and representation allowance)

Question 25

When do companies not give commission based on sales?

Answer 25

When the sales are on installment basis