A property dealer charges commission at the rateof 2%on the first Rs200000,1%on the next Rs 200000& 0.5% on the remaining price.find the commission on the property that has been sold for Rs 540000.
.02*200,000 + .01*200,000 + .005*140,000 = ?
To find the commission on the property sold for Rs 540,000, we need to follow these steps:
Step 1: Determine the different price brackets.
In this case, there are three price brackets:
- The first Rs 200,000 where the commission rate is 2%
- The next Rs 200,000 where the commission rate is 1%
- The remaining price, which is the difference between the property price and Rs 400,000 (200,000 + 200,000)
Step 2: Calculate the commission for each price bracket.
- First Rs 200,000: Commission = 2% of Rs 200,000 = 0.02 * 200,000 = Rs 4,000
- Next Rs 200,000: Commission = 1% of Rs 200,000 = 0.01 * 200,000 = Rs 2,000
- Remaining price: Rs 540,000 - Rs 400,000 = Rs 140,000
- Commission = 0.5% of Rs 140,000 = 0.005 * 140,000 = Rs 700
Step 3: Add up the commissions from each price bracket.
- Total commission = Rs 4,000 + Rs 2,000 + Rs 700 = Rs 6,700
So, the commission on the property that has been sold for Rs 540,000 is Rs 6,700.