Question

For collecting the policies of 50,00,000 an insurance agent gets a commission of 15000. If Amit
collects 80,00,000 worth of policies, find his commission.​

Answer 1

Answer:

His Commission will be equal to Rs. 24,000.

Step-by-step explanation:

Let's establish the formula for Commission as such,

$r \times y = x$

Here, r is the rate of Commission.

Y is the Total amount of Money that the Agent has gained.

X is the commission received, which is Unknown.

In the first part of the question, we've been given 2 values, i.e y = 50,00,000 and x = 15,000

In other words, we're not given the rate of Commission that is r.

Putting that in formula,

$r \times 5000000 = 15000 \\ r = \frac{15000}{5000000}$

Cutting off the zeroes for simplicity,

$r = \frac{15}{5000} \\ r = \frac{3}{1000} \\ r = 0.003$

Hence the rate of Commission is 0.003 or

$3 \times {10}^{ - 3}$

Now, 2nd part of the question is,

We're given the Amount earned by Agent, which is equal to y = 80,00,000

And r = 0.003

By the Above used formula of Commission, putting values and finding answer:

$r \times y = x \\ 0.003 \times 8000000 = x \\ \frac{3}{1000} \times 8000000 = x$

Cutting the Zeroes,

$\frac{3}{1} \times 8000 = x \\ x = 24000$

This is the Amount of Commission that the Agent will earn.

I hope this helped you. If you think I didn't solve the question right, or could've made it better, do so tell me. If you have any queries regarding the Solution or Methodology, feel free to ask me.

Have a Good Day!