Final answer:
To calculate the total commission, we first find the 1% commission on the first 10 lakh (Rs 10,000), and then calculate the 1.5% commission on the remaining amount (Rs 3,960). Adding both, the total commission amounts to Rs 13,960, not matching any of the options given.
Step-by-step explanation:
The question asks us to calculate the total commission an agent would earn if they collected Rs 12,64,000 from new clients, given that the insurance company offers a 1% commission for the first 10 lakh (1 million) and 1.5% for the remaining amount. Here's how you calculate it:
- First, we calculate the 1% commission on the first 10 lakh, which is 1% of Rs 10,00,000, yielding a commission of Rs 10,000.
- Next, we find the amount over 10 lakh, which is Rs 12,64,000 - Rs 10,00,000 = Rs 2,64,000.
- Then, a 1.5% commission is applied to Rs 2,64,000, resulting in Rs 3,960.
- Finally, we add both commissions: Rs 10,000 + Rs 3,960 = Rs 13,960 total commission.
Since Rs 13,960 is not listed in the options provided, it seems there might have been a typo or calculation error within the options. Double-checking the calculations provided here, the correct commission the agent would earn is Rs 13,960, which does not match any of the provided options.