Question

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

Answer 1

Step-by-step explanation:

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,

$r \times y = xr×y=x$

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,

$1\% = \frac{1}{100} = 0.011%=100 1 =0.01$

Now, putting values in, for the first 10 Lakhs

$(0.01 \: or \: \frac{1}{100}) \times 1000000 = 10000(0.01or1001 )×1000000=10000$

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,

$(0.015 \: or \: \frac{1.5}{100}) \times 264000 =x(0.015or </p><p>1001.5$

)×264000=x

x = 3960x=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,

$total \: commission \: = commission \: of \: 10 \: lakhs \: + commission \: of \: the \: rest \: amounttotalcommission=commissionof10lakhs+commissionoftherestamount\begin{gathered}x = 10000 + 3960 \\ x = 13960 \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: \end{gathered} </p><p>x=10000+3960x=13960$

Here, x is the total commission.