Question

Tanya sold her flat in Delhi at a profit of 60%. She had purchased the flat for ₹40 Lakhs. She had sold it through a broker and paid him a commission of 5% on the profit she made. How much commission did the broker get?

• A. ₹1,80,000
• B. ₹3,20,000
• C. ₹1,20,000
• D. ₹2,40,000

Answer 1

The correct option is C ₹1,20,000

Cost Price of the Flat = ₹40,00,000
Profit = 60% of ₹40,00,000 = $\frac{60}{100}\times 4000000$ = ₹24,00,000
Commision paid to broker = 5% of ₹24,00,000 = $\frac{5}{100}\times 2400000$ = ₹1,20,000