Question

A building costing rs. 174000 was sold through a broker at a gain of 20% on the sale price .The broker deducted 12.5% of the price as commission. Find the net gain to the seller

Answer 1

A building costing rs. 174000 was sold through a broker at a gain of 20% at Sale Price and 12.5% commisson was paid then net gain to the seller = 16,312.5

Step-by-step explanation:

A building costing rs. 174000 was sold through a broker at a gain of 20% on the sale price

Let say Sale Price = S

20% Gain on Sale Price = (20/100)S = 0.2S

Cost Price = S - 0.2S = 0.8S

0.8S = 174000

=>  S  = 2,17,500‬

Sale Price = 217500

Profit = 217500 - 174000 = 43500 Rs

Commission Paid 12.5 %  

= (12.5/100) * 217500

= 27,187.5  Rs

Net Gain =  43500 -  27,187.5 = 16,312.5

net gain to the seller = 16,312.5