Question

Manojbhai bought an old tractor through a broker for Rs 2, 50,000. The broker charged 1% brokerage from the seller and 2% brokerage from the buyer. What is the total amount of brokerage received by the broker?

Answer 1

Hint: The broker would get brokerage from both the seller as well as the buyer so the total brokerage would get added.
The formula for finding x percentage of any quantity is
\[\dfrac{x}{100}\times\] Quantity

Complete step-by-step answer:
As per the question, the broker would get brokerage from both the seller as well as the buyer so the total brokerage would get added.
Hence, the brokerage that he will get from the seller is 1% so the amount that he will get from the seller would be
1% of 2,50,000=\[ \dfrac{1}{100}\times 2,50,000\]
=2,500
Similarly, the brokerage that he will get from the buyer is 2% so the amount that he will get from the buyer would be
2% of 2,50,000=\[\dfrac{2}{100} \times 2,50,000\]
=5,000
Now, the total brokerage that the broker is going to get is the sum of the two amounts and that is
Total brokerage is
\[\begin{align}
  & =2,500+5,000 \\
 & =7,500 \\
\end{align}\]
Hence, the broker will get Rs.7,500 in totality.

Note: The only step at which the student can make an error is where the total amount of brokerage charge is to be calculated as it might be confusing for the students to figure out that both the brokerage amounts have to be added together to get the total brokerage amount.