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A firm pays commission to its manager @10%on profits arrived at after charging such commission.What will be the amount of commission if the profits before charging such commission is Rupee 22,000?
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Answer / sarvjeet
Suppose Profit after commission is "a". Then commission would be "a X 10 /100 = 0.1a". It means profit before charging commission would be "a + 0.1a". Now. "a + 0.1a" = 22000; as given in problem. Solving this equation we get 1.1a = 22000. It means a = 22000/1.10. Or a = 20000. Since "a" was assumed to profit after commission in the starting. Amount of commission would be 20000*10% = 2000
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