COMMON PROBLEMS INVOLVING PERCENT

➢ DISCOUNT
Discount - a reduction in the usual price of something.
When an item is on sale, the following terms are involved:
Original Price (OP)- The price paid for an object in the original currency at the time of
purchase.
Rate of Discount (RD) - The percentage of this discount on the list price is called the
discount rate.
Amount of Discount (AD) - The amount of money that is reduced from the list price of an
item is called the discount.
Discounted Price - the price to be paid after the discount is deducted.

Example 1:
A jacket originally costs ₱3,500 but is on sale with a 20% discount. What is the
amount of the discount, and what is the discounted price?
Given:
● Original price of the jacket = ₱3,500
● Discount rate = 20%
Asked:
● What is the amount of the discount?
● What is the discounted price?
Formula:
1. Amount of Discount = Original Price × Rate of Discount
AD= OP X RD
2. Discounted Price = Original Price - Amount of Discount
DP= OP - AD
Solution:
Amount of Discount:
AD = OP X RD
= ₱3,500 × 20%
= ₱3,500 × .20
= ₱700
Discounted Price:
DP = OP - AD
=₱3,500 - ₱700
=₱2800
Conclusion:
The amount of the discount is ₱700, and the discounted price of the jacket
is ₱2,800.
Try this, Reuel (No. 1):
A store is offering a 15% discount on a bicycle originally priced at ₱12,000. How
much is the discount, and what is the price of the bicycle after the discount?

Given:
Asked:
Formula:
Solution:
Conclusion:

Example 2:
Sophia bought a pair of shoes for ₱2,400, which was discounted by ₱600 from the
original price. What was the rate of the discount?

Given:
● Amount of Discount = ₱600
● Discounted price = ₱2,400
Asked:
What was the rate of the discount?

Formula:
𝐴𝑚𝑜𝑢𝑛𝑡 𝑜𝑓 𝐷𝑖𝑠𝑐𝑜𝑢𝑛𝑡
1. Rate of Discount= 𝑂𝑟𝑖𝑔𝑖𝑛𝑎𝑙 𝑃𝑟𝑖𝑐𝑒
2. Original Price= Amount of Discount + Discounted Price

Solution:
OP = AD + DP
= ₱600 + ₱2,400
=P3000

𝐴𝐷
RD= 𝑂𝑃

600
= 3000
= 0.2 (Convert to percent by moving the decimal point 2
places to the right)
= 20%
Conclusion:
The rate of the discount on the pair of shoes was 20%.

Try this, Reuel (No. 2):

A washing machine was sold for ₱24,000 after a discount of ₱6,000. What was the
rate of the discount?

Given:
Asked:
Formula:
Solution:
Conclusion:
Example 3:
A furniture store sold a table with a 15% discount, which amounted to ₱1,200. What
was the original price of the table?

Given:
● Discount rate = 15%
● Amount of discount = ₱1,200
Asked:
What was the original price of the table?
Formula:
𝐴𝑚𝑜𝑢𝑛𝑡 𝑜𝑓 𝐷𝑖𝑠𝑐𝑜𝑢𝑛𝑡
Original Price= 𝑅𝑎𝑡𝑒 𝑜𝑓 𝐷𝑖𝑠𝑐𝑜𝑢𝑛𝑡

Solution:
𝐴𝐷
OP= 𝑅𝐷
1200
= .15
=₱8000
Conclusion: The original price of the table was ₱8,000.

Try this, Reue (No. 3):

A jacket was sold at a 10% discount, which was equivalent to ₱500. What was the
original price of the jacket?

Given:
Asked:
Formula:
Solution:
Conclusion:

➢ COMMISSION
Amount of Commission - it is the certain amount of money that an employee will receive.
Total Sales - is the total amount of income a company generates from sales over a specific
period of time.
Rate of Commission - is the percentage of profit or other compensation that employees get
for meeting goals.
Example 4:
Lisa works as a real estate agent and earns a 5% commission on every house she
sells. If she sold a house worth ₱3,000,000, how much commission did she earn?

Given:
● Total Sales = ₱3,000,000
● Rate of Commission = 5%
Asked:
What is the Amount of Commission Lisa earned?
Formula:
Amount of Commission=Total Sales x Rate of Commission​

Solution:
AC= TS X RC
= ₱3,000,000 x .05
=₱150,000

Conclusion: Lisa earned an Amount of Commission of ₱150,000 from selling the

house.

Try this, Reuel (No. 4):

John is a car salesperson and earns a 12% commission on the sales he makes. Last
month, he sold cars worth a total of ₱500,000. How much commission did he earn?

Given:
Asked:
Formula:
Solution:
Conclusion:

Example 5:
Anna earned a commission of ₱20,000 by selling computers, with a commission rate
of 8%. What was the total value of her sales?

Given:
 ● Amount of Commission = ₱20,000
● Rate of Commission = 8%

Asked:
What was the Total Sales of Anna?

Formula:
𝐴𝑚𝑜𝑢𝑛𝑡 𝑜𝑓 𝐶𝑜𝑚𝑚𝑖𝑠𝑠𝑖𝑜𝑛
Total Sales=
𝑅𝑎𝑡𝑒 𝑜𝑓 𝐶𝑜𝑚𝑚𝑖𝑠𝑠𝑖𝑜𝑛

Solution:
𝐴𝐶
TS=
𝑅𝐶
20,000
=
.08
= ₱250,000
Conclusion: The total value of Anna's sales was ₱250,000.

Try this, Reuel (No.5):

Mark earned a commission of ₱7,500 by selling furniture at a commission rate of 5%.
What was the total value of the furniture sales he made?

Given:
Asked:
Formula:
Solution:
Conclusion:

Example 6:
Sarah earned a commission of ₱10,000 after selling products worth ₱200,000. What
was her commission rate?

Given:
● Amount of Commission = ₱10,000
● Total Sales = ₱200,000

Asked:
What was her Rate of Commission?

Formula:
𝐴𝑚𝑜𝑢𝑛𝑡 𝑜𝑓 𝐶𝑜𝑚𝑚𝑖𝑠𝑠𝑖𝑜𝑛
Rate of Commission=
𝑇𝑜𝑡𝑎𝑙 𝑆𝑎𝑙𝑒𝑠

Solution:
𝐴𝐶
RC=
𝑇𝑆
10,000
=
200,000
 = 0.05 or 5%
Conclusion: Sarah's commission rate was 5%.

Try this, Reuel (No.6):

David earned ₱15,000 in commission after selling a total of ₱300,000 worth of
electronics. What was his rate of commission?

Given:
Asked:
Formula:
Solution:
Conclusion:

➢ SALES TAX
Tax - a compulsory contribution to state revenue, levied by the government on workers
income and business profits, or added to the cost of some goods, services, and transactions.
Terms involved:
Sales Tax - Consumption tax imposed by the government on the sale of goods and services.
Rates of Sales Tax - an additional amount of money we pay based on a percentage of the
selling price of goods and services that we purchase.
Selling Price - the price for which something actually sells.
Total Cost - the original price plus the calculated sales tax.

Example 7:
Emma bought a new laptop for ₱50,000, and the sales tax rate is 12%. How much
sales tax did she pay? What is the total cost of the laptop after adding the sales tax?

Given:
● Selling Price = ₱50,000
● Rate of Sales Tax = 12%
Asked:
1. What is the Sales Tax?
 2. What is the Total Cost of the laptop after adding the sales tax?
Formula:
1. Sales Tax:
Sales Tax= Selling Price x Rate of Sales Tax
2. Total Cost:
Total Cost= Selling Price + Sales Tax

Solution:
1. Sales Tax:
ST= SP x RT
= ₱50,000 x .12
= ₱6000
2. Total Cost
TC= SP + ST
= ₱50,000 + ₱6000
= ₱56,000
Conclusion: Emma paid a Sales Tax of ₱6,000. The Total Cost of the laptop after
adding the sales tax was ₱56,000.

Try this, Reuel (No.7):

A customer purchased a refrigerator priced at ₱20,000. If the sales tax is 10%, what
is the amount of the sales tax? What is the total cost of the refrigerator after adding
the sales tax?

Given:
Asked:
Formula:
Solution:
Conclusion:

Example 8:
Michael bought a pair of shoes for ₱3,000 and paid an additional ₱240 as sales tax.
What was the sales tax rate?

Given:
● Selling Price = ₱3,000
● Sales Tax= ₱240
Asked:
What was the Rate of Sales Tax?
Formula:
𝑆𝑎𝑙𝑒𝑠 𝑇𝑎𝑥
Rate of Sales Tax=
𝑆𝑒𝑙𝑙𝑖𝑛𝑔 𝑃𝑟𝑖𝑐𝑒
Solution:
𝑆𝑇
RT=
𝑆𝑃
₱240
=
₱3,000
= 0.08 or 8%

Conclusion: The sales tax rate was 8%.

Try this, Reuel (No.8):
A dining set was purchased for ₱15,000, with an additional sales tax of ₱1,200. What
was the rate of sales tax?

Given:
Asked:
Formula:
Solution:
Conclusion:

Example 9:

A washing machine was purchased with a 12% sales tax amounting to ₱3,600. What
was the original selling price before the tax?

Given:
● Sales Tax = ₱3,600
● Rate of Sales Tax = 12%
Asked:
What was the Original Selling Price?
Formula:
𝑆𝑎𝑙𝑒𝑠 𝑇𝑎𝑥
Selling Price=
𝑅𝑎𝑡𝑒 𝑜𝑓 𝑆𝑎𝑙𝑒𝑠 𝑇𝑎𝑥
Solution:
𝑆𝑇
SP=
𝑅𝑇
₱3,600
=
.12
= ₱30, 000
Conclusion: The original selling price of the washing machine was ₱30,000.

Try this, Reuel (No.9):

A new smartphone incurred a 15% sales tax of ₱4,500. What was the original selling
price of the smartphone before the tax was applied?
Given:
Asked:
Formula:
Solution:
Conclusion:

➢ SIMPLE INTEREST
Interest - the fee a business pays a lender (creditor) to borrow a money.
Terms involved:
Simple Interest - an interest charge that borrowers pay lenders for a loan
Principal - is the money borrowed by the debtor.
Interest rate - is the amount lenders charge borrowers and is a percentage of the principal.
Time - the duration for which the principal amount is lent or borrowed.

Example 10:
Samantha deposited ₱10,000 into a savings account that earns a simple interest rate
of 5% per year. How much interest will she earn after 3 years?
Given:
● Principal (P) = ₱10,000
● Interest Rate (R) = 5% per year
● Time (T) = 3 years
Asked:
How much interest will Samantha earn after 3 years?
Formula:
Simple Interest= Principal×Rate×Time
Solution:
I=PxRxT
= 10,000 x .05 x 3
= ₱ 1500
Conclusion: The simple interest that Samantha will earn after 3 years is ₱1,500.
Try this, Reuel (No.10):
A bank offers a simple interest rate of 6% per year. If Leo invested ₱20,000, how
much interest will he have earned after 4 years?

Given:
Asked:
Formula:
Solution:
Conclusion:

Example 11:

Rita earned ₱3,000 in simple interest over 2 years at an annual interest rate of 5%.
What was the principal amount she invested?
 Given:
● Simple Interest (I) = ₱3,000
● Time (T) = 2 years
● Interest Rate (R) = 5% per year
Asked:
What was the Principal (P) amount Rita invested?
Formula:
𝑆𝑖𝑚𝑝𝑙𝑒 𝐼𝑛𝑡𝑒𝑟𝑒𝑠𝑡
Principal=
𝑅𝑎𝑡𝑒 𝑥 𝑇𝑖𝑚𝑒
Solution:
𝐼
P=
𝑅×𝑇
₱3,000
=
.05 × 2
₱3,000
=
.10
= ₱30,000
Conclusion: The principal amount that Rita invested was ₱30,000.
Try this, Reuel (No.11) :
A simple interest of ₱1,200 was earned over 3 years at a 4% interest rate per annum.
What was the principal amount?
Given:
Asked:
Formula:
Solution:
Conclusion:

Example 12:

James invested ₱15,000, and after 2 years, he earned ₱3,000 in simple interest.
What was the annual interest rate?

Given:
● Principal (P) = ₱15,000
● Simple Interest (I) = ₱3,000
● Time (T) = 2 years
Asked: What was the annual interest rate (R)?
Formula:
𝑆𝑖𝑚𝑝𝑙𝑒 𝐼𝑛𝑡𝑒𝑟𝑒𝑠𝑡
Rate=
𝑃𝑟𝑖𝑛𝑐𝑖𝑝𝑎𝑙 × 𝑇𝑖𝑚𝑒
Solution:
𝐼
R=
𝑃×𝑇
₱3,000
=
₱15,000 × 2 𝑦𝑒𝑎𝑟𝑠
3,000
=
15,000 × 2
3,000
=
30,000
= 0.10 or 10%
Conclusion: The annual interest rate that James earned was 10%.
Try this, Reuel:

A sum of ₱8,000 was invested, and after 5 years, it accumulated ₱4,000 in simple
interest. What was the rate of interest per year?

Given:
Asked:
Formula:
Solution:
Conclusion:
Answer Key:
1. The discount amount is ₱1,800 and the discounted price is ₱10,200.
2. The rate of the discount is 20%.
3. The original price of the jacket was ₱5,000.
4. John earned a commission of ₱60,000 last month.
5. The total value of the furniture sales Mark made was ₱150,000.
6. David's rate of commission was 5%.
7. The amount of sales tax is ₱2,000.
The total cost of the refrigerator after adding the sales tax is ₱22,000.
8. The rate of sales tax was 8%.
9. The original selling price of the smartphone before the tax was applied was
₱30,000.
10. Leo will earn ₱4,800 in interest after 4 years.
11. The principal amount was ₱10,000.
12. The rate of interest per year was 10%.