Question

A property dealer charges commission at the rate of $2\%$ on the first $Rs200000,$ $1\%$ on the next $Rs200000$ and $0.5\%$ on the remaining price. Find his commission on the property that has been sold for $Rs54000$

Answer 1

$54000=200000+200000+140000$

$\therefore$ The net commission earned on a sale of Rs.540000 is

$\frac{2}{100}\times 200000+\frac{1}{100}\times 200000+\frac{0.5}{100}\times 140000$

$=Rs.(4000+2000+700)$

$=Rs.6000+700$

$=Rs.6700$