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Worked Examples · Example 2

Q.A broker arranges the sale of a plot of land for ₹12,50,000 and charges brokerage at 1.5% from each of the buyer and the seller. Find

(i) the brokerage he receives from the seller and
(ii) his total brokerage.
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✓ Free question

The value of the transaction is ₹12,50,000 and the rate is 1.5%1.5\% on each side.

  1. Brokerage from the seller:

    1.5100×1250000=1.5×12500=18750.\frac{1.5}{100}\times 1250000 = 1.5\times 12500 = 18750.

  2. Total brokerage. The broker charges the buyer the same 1.5%1.5\%, so he receives ₹18,750 from each side:

    Total=2×18750=37500.\text{Total}=2\times 18750 = 37500.

    Independent check: 1%1\% of ₹12,50,000 is ₹12,500, so 1.5%1.5\% is ₹18,750; doubling gives ₹37,500, which matches.
    ✓Final answer

    (i) ₹18,750 from the seller; (ii) total brokerage = ₹37,500.

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