Question

A property dealer charges commission at the rate of 2% on the first Rs200000, 1% on the next Rs200000 and 0.5% on the remaining price. Find his commission on the property that has been sold for Rs540000.

Answer 1

Hint:For solving this problem, we individually consider the commission rate and the amount. Now by multiplying the commission rate with the amount we get the actual commission for that rate. Summing all the commission will get the final commission on the property sold.

Complete step-by-step answer:
According to the problem statement, we are given that the first commission rate is 2% on the Rs 200000. The second commission rate is 1% on Rs. 200000. The third commission rate is 0.5% on Rs.140000. Now, evaluating the amount of commission received in each case:
The first commission of the dealer $=\text{rate of interest }\left( {{R}_{1}} \right)\times \text{ amount}\left( {{A}_{1}} \right)$
The first commission of the dealer $=\dfrac{2}{100}\times Rs.200000=Rs.4000$.
The second commission of the dealer $=\text{rate of interest }\left( {{R}_{2}} \right)\times \text{ amount }\left( {{A}_{2}} \right)$
The second commission of the dealer $=\dfrac{1}{100}\times Rs.200000=Rs.2000$
The third commission of the dealer $=\text{rate of interst }\left( {{R}_{3}} \right)\times \text{ amount }\left( {{A}_{3}} \right)$
The third commission of the dealer $=\dfrac{0.5}{100}\times Rs.140000=Rs.700$
Then, the net commission of the dealer = first commission + second commission + third commission
The net commission of the dealer $=Rs.\left( 4000+2000+700 \right)=Rs.6700$
Hence, the net commission of the dealer on the property of Rs. 540000 is Rs.6700.

Note: The key concept involved in solving this problem is the knowledge of commission amount for a given commission rate and amount. The rate given in percentage must be converted into decimal. This is a direct problem for strengthening the concept.