Question

Mr. Shamanth bought 5 pieces of land in different areas of Patna. On the first 3 pieces of land which cost him ₹3 lakhs each, he paid a commission of 5% to the broker. The other 2 pieces of land that cost him ₹10 lakhs each he paid a commission of only 2%.
Find the total commission that the broker earns.

• A. ₹75,000
• B. ₹85,000
• C. ₹77,500
• D. ₹93,500

Answer 1

The correct option is B ₹85,000

Cost of the first 3 pieces of land = ₹(3 + 3 + 3) lakhs = ₹9 lakhs
Commission paid to the broker = 5% of ₹9 lakhs = ₹45,000
Cost of the next 2 pieces of land = ₹(10+10) lakhs ​= ₹20 lakhs
Commission paid to the broker = 2% of ₹20 lakhs = ₹​​​​​40,000
Total commission earned by the broker = ₹45000 + ₹40000 = ₹85,000