Exam practice

Every question from the end of every unit, with hints and answers to open. After you check an answer, mark how you did, and come back to the ones you didn’t get.

24 questions

Unit 3 · Commission and Dividend

Exercise 3.1

Question 1

Land: Rs 1 crore 50 lakh at 5%

Answer

Rs 1 crore 50 lakh = Rs 1,50,00,000.
$\frac{5}{100} \times 15000000 =$ Rs 7,50,000.

House: Rs 2 crore at 3%

Answer

$\frac{3}{100} \times 20000000 =$ Rs 6,00,000.

Photocopy machine: Rs 4 lakh at 7.5%

Answer

$\frac{7.5}{100} \times 400000 =$ Rs 30,000.

Shares: Rs 5 crore 25 lakh at 2%

Answer

Rs 5 crore 25 lakh = Rs 5,25,00,000.
$\frac{2}{100} \times 52500000 =$ Rs 10,50,000.

Question 2

How much commission does the agent receive?

Answer

$\frac{5}{100} \times 14000000 =$ Rs 7,00,000.

How much does the house owner receive?

Answer

14000000 − 700000 = Rs 1,33,00,000.

Question 3

How much does the showroom pay its employees as commission in Asoj?

Answer

$\frac{0.25}{100} \times 13500000 =$ Rs 33,750.

By what percentage is an employee’s income in Asoj more than the monthly salary?

Answer

Each employee’s share = 33750 ÷ 10 = 3375, so the income is Rs 23,375.
Increase $= \frac{3375}{20000} \times 100\% = 16.875\% \approx$ 16.88%.
Read whether the commission is shared or paid to each: if each employee were paid 0.25% of the sales, the showroom would pay 10 × 33750 = Rs 3,37,500 and each income would be $\frac{33750}{20000} \times 100\% = 168.75\%$ more than the salary.

Question 4

Rs 4,45,600

Answer

All of it is in the first band: $\frac{1}{100} \times 445600 =$ Rs 4,456.

Rs 7,25,000

Answer

Rs 7,25,000 = Rs 6,00,000 (1%) + Rs 1,25,000 (1.5%).
Commission = 6000 + 1875 = Rs 7,875.

Rs 15,75,000

Answer

Rs 15,75,000 = Rs 6,00,000 (1%) + Rs 4,00,000 (1.5%) + Rs 5,75,000 (2%).

Figure 3.5 The sale in the three bands. Drawn to scale.

Commission = 6000 + 6000 + 11500 = Rs 23,500.

Question 5

A woman working in a cosmetics shop earns a salary of Rs 17,000 a month, plus a commission of a certain percentage of her sales. In Mangsir she sold goods worth Rs 10,00,000 and earned Rs 30,000 in all, with the commission. How much was her commission, and at what rate?

Answer

Commission = 30000 − 17000 = Rs 13,000.
Rate $= \frac{13000}{1000000} \times 100\% =$ 1.3%.

Exercise 3.2

Question 1

Rs 60 lakh at 25%

Answer

$\frac{25}{100} \times 6000000 =$ Rs 15,00,000.

Rs 2 crore 50 lakh at 67.5%

Answer

$\frac{67.5}{100} \times 25000000 =$ Rs 1,68,75,000.

Rs 80 lakh at 48%

Answer

$\frac{48}{100} \times 8000000 =$ Rs 38,40,000.

Rs 9 crore at 55%

Answer

$\frac{55}{100} \times 90000000 =$ Rs 4,95,00,000.

Question 2

A textile factory made a profit of Rs 5 lakh 60 thousand in 2076 BS. It decided to share 60% of the profit equally among its 105 employees as a bonus. How much does each employee get?

Answer

Bonus fund $= \frac{60}{100} \times 560000 = 336000$ .
Each = 336000 ÷ 105 = Rs 3,200.

Question 3

An insurance company decided to share two thirds of its profit equally among its 150 staff as a bonus. If each gets Rs 40,000, what was the company’s profit that year?

Answer

Bonus fund = 150 × 40000 = 6000000.
This is $\frac{2}{3}$ of the profit, so profit $= 6000000 \times \frac{3}{2} =$ Rs 90,00,000.

Question 4

4,50,000 shares, 40% of Rs 50,00,000

Answer

Total $= \frac{40}{100} \times 5000000 =$ Rs 20,00,000.
Per share $= 2000000 \div 450000 = 4.444\ldots \approx$ Rs 4.44.

1,15,62,486 shares, 55.5% of Rs 12,00,00,000

Answer

Total $= \frac{55.5}{100} \times 120000000 =$ Rs 6,66,00,000.
Per share $= 66600000 \div 11562486 = 5.760\ldots \approx$ Rs 5.76.

3,28,50,000 shares, 23.5% of Rs 5,20,60,000

Answer

Total $= \frac{23.5}{100} \times 52060000 =$ Rs 1,22,34,100.
Per share $= 12234100 \div 32850000 = 0.372\ldots \approx$ Rs 0.37 (37 paisa).

21,63,25,030 shares, 60% of Rs 2,75,67,36,894

Answer

Total $= \frac{60}{100} \times 2756736894 =$ Rs 1,65,40,42,136.40.
Per share $= 1654042136.40 \div 216325030 = 7.646\ldots \approx$ Rs 7.65.

Question 5

Suryalaxmi Cooperative has 13,63,497 shares of Rs 100 each, and Mamata owns 350 of them. The cooperative made a profit of Rs 1 crore 20 lakh in a year and decided to pay 45% of the profit as a cash dividend. How much cash dividend does Mamata receive?

Answer

Total dividend $= \frac{45}{100} \times 12000000 = 5400000$ .
Per share = 5400000 ÷ 1363497 = 3.96040…
Mamata’s $= 350 \times \frac{5400000}{1363497} = 1386.14$ : Rs 1,386.14.

Question 6

An insurance company has 22,39,440 shares of Rs 100 each. It made a profit of Rs 1,52,05,675 in a year, and its board of directors decided to pay 65% of the profit as a cash dividend. How much does a shareholder with 280 shares receive?

Answer

Total dividend $= \frac{65}{100} \times 15205675 = 9883688.75$ .
Per share = 9883688.75 ÷ 2239440 = 4.41346…
For 280 shares: 280 × 4.41346… = 1235.77: Rs 1,235.77.