Question

A dealer paid kshs 240,000 to an agent as commission for sale of a car .The commission was 3 percent of the car price how much money did the dealer remain with from the sale of the car if he also had to pay the government v.A.T at 16 percent of the total car

Answer 1

kshs 6,480,000

Explanation:

Since, kshs 240,000 represent the 3% of the car price, you can use a rule of three to calculate the amount that represents 100%:

240,000 → 3%

x → 100%

x=(240,000*100)/3

x=8,000,000

So, the price of the car is kshs 8,000,000 and you can calculate the 16% of this, to find the amount that the dealer had to pay as government V.A.T:

8,000,000*16%=1.280.000

Now, you can subtract the comission and the government VAT from the car price:

8,000,000-240,000-1,280,000=6,480,000

According to this, the answer is that the dealer remained with kshs 6,480,000 from the sale of the car.