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A is to receive ten percent commission on profit after charging such commission. Profit before commission is Rs 110000 what is the commission?

Answer and explanation

Correct answer: Rs 10000

The direct answer is A: the commission is Rs 10000. Here commission is 10% of profit after charging commission. Let commission be C. The profit before commission is Rs 110000, so profit after commission is Rs 110000 − C. The equation is C = 10% × (110000 − C). Rearranging gives C = 0.10(110000 − C), so 1.10C = 11000 and C = 10000. The shortcut is profit before commission × rate/(100 + rate) = 110000 × 10/110 = Rs 10000. Option A is correct. Option B, Rs 11000, applies 10% to the amount before commission and belongs to the wrong type of question. Option C, Rs 12100, adds 10% to the profit incorrectly. Option D, Rs 9000, has no valid calculation basis. Memory cue: after commission means divide by 100 plus the rate.

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Commission After ChargingNumericalFormula

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