Commission calculation on sales: An agent sells goods worth ₹15000. If the commission rate is 12 1/2%, how much commission does the agent earn?

Difficulty: Easy

Correct Answer: ₹1875

Explanation:


Introduction / Context:
We compute sales commission based on a percentage of the sale value. Here, 12 1/2% is a friendly fraction for mental math.


Given Data / Assumptions:

  • Sales value = ₹15000.
  • Commission rate = 12 1/2% = 12.5% = 1/8.

Concept / Approach:
Commission = Rate * Sale amount. Using 1/8 simplifies calculation.


Step-by-Step Solution:

Commission = (1/8) * 15000.= 15000 / 8 = 1875.So the commission is ₹1875.

Verification / Alternative check:
Compute as 12.5%: 0.125 * 15000 = 1875 — same result.


Why Other Options Are Wrong:

  • ₹2125, ₹2000, ₹2700, ₹1750 do not equal 12.5% of ₹15000.

Common Pitfalls:
Converting 12 1/2% incorrectly. Always remember 12 1/2% = 1/8 = 0.125.


Final Answer:
₹1875

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