Questions & Answers

A merchant pays \[9\% \] commission and \[4\% \] del-credere to his agent. If the agent sells the goods of \[Rs.55000\], find the total earnings of the agent.

Answer Verified Verified
Hint: Try to understand the question and the concept of percentage before calculating earnings. Add both the percent of commission and del-credere to get a total percent. Then find the earning by using that total percent on the amount of sale.

Complete step-by-step answer:
Let’s try to understand the question first. According to the question, the merchant pays \[9\% \] commission and \[4\% \] del-credere to the agent, i.e. the merchant will pay \[9\% \] of the sale as commission to the agent and \[4\% \] of the sales as del-credere to the agent.
Given that agent sells goods of \[Rs.55000\] and the merchant will give $9 + 4 = 13\% $ of this sell to the agent
For understanding the concept of $13\% $ percentage, just imagine dividing a quantity into a hundred equal parts and taking $13$ parts from it. Basically, one per cent is one-hundredth of a whole.
So, for calculating $13\% $ of the sale, we need to multiply $\dfrac{{13}}{{100}}$ to the total amount of money
$ \Rightarrow 13\% $ of \[Rs.55000\]$ = \dfrac{{13}}{{100}} \times 55000 = 13 \times 550$
Let’s now solve this further to find the required answer
Amount earned through commision $ = 13 \times 550 = Rs.7150$
Hence, the total earnings of the agent will be $Rs. 55000$ + $Rs.7150$ which is $Rs.62150$

Note: Do not calculate the percentage for both of them together. Multiplying them together in a single equation will give you a wrong answer. The total earning will be calculated after adding up the commission per cent and del-credere per cent. Total earnings of the agent will be the sum of the product which he sold and the commission earned.