Question

A property dealer charges commission at the rate of 2% on the first Rs 200000, 1% on the next Rs 200000 and 0.5% on the remaining price. Find his commission on the property that has been sold for Rs 540000.

Answer 1

Total cost of the property = Rs 540000
Commission on the first Rs 200000 = 2% of Rs 200000
= $\left(\frac{2}{100}\times 200000\right)$ = Rs 4000

Commission on the next Rs 200000 = 1% of Rs 200000
= $\left(\frac{1}{100}\times 200000\right)$ = Rs 2000
Remaining amount = Rs (540000 − 400000) = Rs 140000
∴ Commission on Rs 140000 = 0.5% of Rs 140000
= Rs $\left(\frac{0.5}{100}\times 140000\right)$
= Rs $\left(\frac{5}{1000}\times 140000\right)$ = Rs 700
Thus, total commission on the property worth Rs 540000 = Rs (4000 + 2000 + 700)
= Rs 6700
Hence, the commission of the property dealer on the property that has been sold for Rs 540000 is Rs 6700.