Question

A person insures $Rs.26,000$ through an insurance agent. If the agent gets $Rs.650$ as the commission, find the rate of commission.

Answer 1

Suppose $x$ is the rate of commission.

Total amount paid $=26,000$ Rs.

Commission = $650$ Rs

Now, $x=\frac{\text{Commission}}{\text{Total amount}}\times 100=\frac{100\times 650}{26000}=\frac{5}{2}=2.5$

Hence, the commission rate = $2.5$%