Question

An insurance company offered 1% commission for the first 10 lakhs and 1.5% for the rest sum of money collected from new clients by its agents. If an agent is able to collect a sum of Rs 1264000 from his new clients, find his total commission.

Answer 1

Answer:

Rs. 13,960

Step-by-step explanation:

This is a simple question including formulae of Addition and rate and question.

The agent collected Rs. 12,64,000 which is

12 Lakhs 64,000

Also written by condition of question, as:

1 ) 10 Lakhs and

2) 2 Lakhs 64,000.

If the rate of Commission on first 10 Lakhs is 1%.

Then by the formula,

$r \times y = x$

Where, r is the rate of Commission

Y is the Amount on which commission is being given and,

X is the Commission earned by the agent, which is Unknown!

Percentages can be written in Decimal form by,

$1\% = \frac{1}{100} = 0.01$

Now, putting values in, for the first 10 Lakhs

$(0.01 \: or \: \frac{1}{100}) \times 1000000 = 10000$

This is the first part of the total answer.

Now the second part,

According to the conditions, the amount left after the first 10 Lakhs will have a Commission of 1.5%

Therefore, we will find the commission on the 2,64,000, as calculated earlier.

Putting in formula,

$(0.015 \: or \: \frac{1.5}{100}) \times 264000 =x$

$x = 3960$

This is the second part of the total answer!

Now Add both the Values, and you will get the total Commission earned by the Agent.

Formula,

$total \: commission \: = commission \: of \: 10 \: lakhs \: + commission \: of \: the \: rest \: amount$

$x = 10000 + 3960 \\ x = 13960 \: \: \: \: \: \: \: \: \: \: \: \: \: \: \:$

Here, x is the total commission.

I hope this helped you, do tell me if I solved it wrong. If you have any queries regarding the question and its solution, feel free to ask me. Have a Good Day!