Question

An agent is paid a commission of 2% on the total sales in a year and a bonus of 0.5% on the excess of sales over Rs. 9,00,000. Find how much he receives as commission if the bonus amounts is Rs. 1500.

Ans:Rs.24000​

Answer 1

To find the total sales on which the agent receives a commission, we can set up the following equation:

commission + bonus = 0.02 * total sales + 0.005 * (total sales - 9,00,000)

Since the bonus is given for the sales above Rs. 9,00,000, we can substitute the value of the bonus into the equation above:

1500 = 0.005 * (total sales - 9,00,000)

Solving this equation for total sales, we find that the total sales is Rs. 24,00,000.

The commission on this amount of sales is 0.02 * 24,00,000 = Rs. 4,800.

Therefore, the agent receives a total of Rs. 4,800 + Rs. 1,500 = Rs. 6,300 as commission.