12th commerce

MATHEMATICS – (II)
2.Commission , Brokerage And Discount
Learning Objectives:-
1) To understand the concept of commission.
2) To understand the concept of brokerage
3) Types of discount
4) How to find Nominal due date and legal due date
5) Various problems based on Discounts and Nominal and legal due date.

Miscellaneous Exercise -1 Refer Page No: 12 , 13

Q.1) A salesman gets a commission of 6.5% on the total sales made by him and bonus of 1% on sales over
Rs 50,000. Find his total income on a turnover of Rs 75,000?
Ans: Total sales made by him = Rs 75000
∴ commission at rate 6.5% on Rs 75000 = 75000 * (6.5/100)
= 75000 * (65/1000)
= Rs 4875
Salesman gets bonus 1% commission on the sales over Rs 50000
Remaining sales = Rs (75000 - 50000)
= Rs 25000

∴ commission at rate 1% on Rs 25000 = 25000 * (1/100)

= Rs 250.
So, total income of salesman = Rs 4875 + Rs 250
= Rs 5125

Q.2) An agent paid was paid Rs 88000 as commission on the sales of computers at rate of 12.5%. If the
price of each computer was Rs 32000, how many computer did she sell?
Ans: Let, total sales of computer = Rs x
So, Commission = total sales * rate of commission
88000 = x * (12.5/100)
88000 = x * (125/1000)
𝟖𝟖𝟎𝟎𝟎 ∗ 𝟏𝟎𝟎𝟎
x= = Rs 704000
𝟏𝟐𝟓

total sales made by agent = Rs 704000

price of each computer = Rs 32000
𝟕𝟎𝟒𝟎𝟎𝟎
therefore, number of computers sold = = 𝟐𝟐
𝟑𝟐𝟎𝟎𝟎

(Number of computers sold by an agent = 22)

Q3) An agent paid a commission of 4% on cash sales and 6% on credit sales made by him. If on the total
sales of Rs 51000 , the agent claims commission of total Rs 2700. Find the sales made by him for cash and
on credit.
Ans: let, cash sales = Rs x.
∴ credit sales = Rs (51000 - x)
So,
𝟒 𝟒𝒙
4 % commission on cash sales = 𝒙 ∗ = 𝑹𝒔
𝟏𝟎𝟎 𝟏𝟎𝟎

According to second condition

𝟔 (𝟑𝟎𝟔𝟎𝟎𝟎 −𝟔𝒙 )
6% commission on credit sales = (𝟓𝟏𝟎𝟎𝟎 − 𝒙) ∗ 𝟏𝟎𝟎 = 𝑹𝒔
𝟏𝟎𝟎

Now, Agents claims a commission of Rs 2700

So,
𝟒𝒙 (𝟑𝟎𝟔𝟎𝟎𝟎 −𝟔𝒙 )
+ = 𝟐𝟕𝟎𝟎
𝟏𝟎𝟎 𝟏𝟎𝟎

−𝟐𝒙 + 𝟑𝟎𝟔𝟎𝟎𝟎 = 𝟐𝟕𝟎𝟎𝟎𝟎

𝟐𝒙 = 𝟑𝟔𝟎𝟎𝟎
x = Rs 18000
i.e. cash sales made by agent = Rs 18000
so, Credit sales = Rs (51000 - 18000)
Credit sales = Rs 33000

Q.4) A salesman is paid fixed monthly salary plus commission on the sales. If on the sale of Rs 96000 and
Rs 108000 in two successive months he receives in all Rs 17600 and Rs 18800 Respectively. Find his
monthly salary and rate of commission paid to him
Ans: let fix salary = Rs x.
Rate of commission = r%
According to first condition
17600 = x + commission on sales
17600 = x + 96000 * (r/100)
17600 = x + 960r……….1)
According to second condition
18800 = x + 108000 * (r/100)
18800 = x + 1080r ……….2)
Subtracting equation 1) from 2)
1200 = 120r
So, r = 10 %
Substitute r = 10 in equation 1)
17600 = x + 9600
x = Rs .8000
( monthly salary of salesman = Rs 8000 and rate of commission = 10%)

Q.5) A present worth of Rs 11660 due 9 months hence is Rs 11000. Find the rate of interest.
Ans: present worth (PW) = Rs 11000
Sum due(SD) = Rs 11660
n = 9 months = (9/12) = 3/4th year
So,
𝒏𝒓
𝑺𝑫 = 𝑷𝑾 (𝟏 + 𝟏𝟎𝟎)
𝟑𝒓
𝟏𝟏𝟔𝟔𝟎 = 𝟏𝟏𝟎𝟎𝟎 (𝟏 + )
𝟒∗𝟏𝟎𝟎
𝟏𝟏𝟔𝟔𝟎 𝟑𝒓
= 𝟏 + 𝟒𝟎𝟎
𝟏𝟏𝟎𝟎𝟎
𝟏𝟏𝟔𝟔𝟎 𝟑𝒓
− 𝟏 = 𝟒𝟎𝟎
𝟏𝟏𝟎𝟎𝟎
𝟔𝟔𝟎 𝟑𝒓
= 𝟒𝟎𝟎
𝟏𝟏𝟎𝟎𝟎

𝟐𝟔𝟒𝟎𝟎𝟎 = 𝟑𝟑𝟎𝟎𝟎𝒓
𝒓 = 𝟖% 𝒑. 𝒂.
(Rate of interest is 8% p.a.)

Q.6) A bill is drawn for Rs 7000 on 3rd may for 3 months and is discounted on 25th may at 5.5%. find the
present worth
Ans: face value (SD) of the bill = Rs 7000
Period of the bill = 3 months
Date of discount = 25th may
Date of drawing = 3rd may
Rate of interest = 5.5% p.a.
Nominal due date = 3rd August
Legal due date = 6th August
So,
Number of days from date of discounting to legal due date
May June July August Total
6 30 31 6

n = 73 days = 73/365 = 1/5th year

𝒏𝒓
𝑺𝑫 = 𝑷𝑾 (𝟏 + 𝟏𝟎𝟎)
𝟏
∗𝟓.𝟓
𝟓
𝟕𝟎𝟎𝟎 = 𝑷𝑾 (𝟏 + )
𝟏𝟎𝟎

𝟏𝟏
𝟕𝟎𝟎𝟎 = 𝑷𝑾 (𝟏 + 𝟏𝟎𝟎𝟎)
𝟏𝟎𝟏𝟏
𝟕𝟎𝟎𝟎 = 𝑷𝑾 (𝟏𝟎𝟎𝟎)
𝟕𝟎𝟎𝟎∗𝟏𝟎𝟎𝟎
= PW
𝟏𝟎𝟏𝟏

𝑷𝑾 = 𝑹𝒔 . 𝟔𝟗𝟐𝟑. 𝟖𝟑

Q.7) A bill was drawn on 14th April 2005 for Rs 3500 was discounted on 6th July 2005 at 5% p.a. the
Banker paid Rs 3465 for the bill. Find the period of the bill.
Ans: face value (SD) of the bill = Rs 3500
Cash Value of the bill = Rs 3465
Date of drawing = 14th April 2005
Date of discount = 6th July 2005
Rate of interest = 5% p.a.
Now,
BD = FV – CV
BD = Rs 3500 – Rs 3465 = Rs 35
So,
𝑺𝑫∗𝒏∗𝒓
𝑩𝑫 = 𝟏𝟎𝟎
(𝟑𝟓𝟎𝟎∗𝒏∗𝟓)
𝟑𝟓 = 𝟏𝟎𝟎

𝟑𝟓 = 𝟏𝟕𝟓𝒏
𝟑𝟓
𝒏 = 𝟏𝟕𝟓 ∗ 𝟑𝟔𝟓 = 𝟕𝟑 𝒅𝒂𝒚𝒔

But date of discount = 6th July 2005

So, number of days from date of discounting to legal due date
July August September total
35 31 17 73
th
Legal due date = 17 September 2005
Legal due date = 14th April 2005
Period of the bill = 5 months

Q.8) The difference between true discount and bankers discount on 6 months hence at 4% p.a. is Rs 80.
Find the true discount, bankers discount and amount of the bill.
Ans:
Let T.D = Rs x.
B.G = BD – TD = interest on TD for 6 months at 4% p.a.
So,
𝟔 𝟒
𝟖𝟎 = 𝒙 ∗ 𝟏𝟐 ∗ 𝟏𝟎𝟎
𝒙
𝟖𝟎 = 𝟓𝟎

𝒙 = 𝟒𝟎𝟎𝟎 𝑹𝒔
Now,
BD = BG + TD
= Rs 80 + Rs 4000
= Rs 4080
Let,
FV of the bill = Rs ‘y’
BD = interest on FV for 6 months at 4% p.a.
𝟔 𝟒
𝟒𝟎𝟖𝟎 = 𝒚 ∗ 𝟏𝟐 ∗ 𝟏𝟎𝟎

𝒚 = 𝑹𝒔 𝟐𝟎𝟒𝟎𝟎𝟎