Question

a property dealer charges commission at the rate of 2% on the first $ 200000,1% on the next $ 200000and0.5 % on the remaining price. find his commission on the property that has been sold for $540000

Answer 1

Given commission on Rs 2, 00,000 is 2%.
Commission on Rs 200001 to Rs 400000 is 1%
Commission above Rs 400001 is 0.5%
Value of the property sold is Rs 5,40,000
Commission = 2% of Rs 200000 + 1% of Rs 200000 + 0.5% of Rs 140000
                    = (2/100) × 200000 + (1/100) × 200000) + (0.5/100) × 140000
                    = Rs 4000 + Rs 2000 + Rs 700
                    = Rs 6700