Question

Abdul sold his house through a broker by paying $Rs.6,125$ as brokerage. If the rate of brokerage is $2.5$%, find the selling price of the house

Answer 1

Brokerage given is $Rs.6,125$. The brokerage rate is $2.5$%.
If the brokerage is $Rs.2.5$, selling price would be $Rs.100$.
If the commission is $Rs.6,125$, selling price is
$\frac{100}{2.5}\times 6125=245000$.
Thus the selling price of the house is $Rs.2,45,000$.
The selling price can also be calculated directly;
selling price $=\frac{100}{\text{commission rate}}\times commission$.

In this example, $S.P.=\frac{100}{25}\times 6125=Rs.2,45,000$.