Question

Vishwasrao bought a plot of land worth Rs 2,50,000 through an estate agent. If the commission was paid at 2.5%, how much did he pay the estate agent.

Answer 1

Original worth of the plot of land = Rs 2,50,000
Commission charged by estate agent = 2.5%
Commission = 2.5% of 2,50,000
$$\begin{gathered} =250000\times \frac{2.5}{100} \\ =250000\times \frac{25}{1000} \\ =\mathrm{Rs}6250 \end{gathered}$$
∴ Amount paid by Vishwasrao to the estate agent is Rs 6,250.