My friend Siddhartha Ghosh is working in the life insurance. Corporation of India (LIC). He was hired on the basis of commission and he got the bonus only on the first years commission. He got the policies of Rs. 2 lakh having maturity period of 10 years. His commission in the first second, third, fourth and for the rest of the years is 20%, 16%, 12%, 10% and 4% respectively. The bonus is 25% of the commission. If the annual premium is Rs. 20,000 then what is his total commission if the completion of the maturity of all the policies is mandatory :

Options

A. Rs. 174,00
B. Rs. 23,600
C. Rs. 15,000
D. Rs. 15,500

Answer

To find Siddhartha Ghosh's total commission over the 10-year period, we will calculate his commission for each year based on the given rates and then sum them up.

### Step-by-Step Solution:

1. **Calculate the First Year Commission:**
- Commission Rate: 20%
- Annual Premium: Rs. 20,000
- First Year Commission = (20/100) * 20,000 = Rs. 4,000

2. **Calculate the Bonus for the First Year:**
- Bonus = 25% of First Year Commission
- Bonus = (25/100) * 4,000 = Rs. 1,000

3. **Calculate the Second Year Commission:**
- Commission Rate: 16%
- Second Year Commission = (16/100) * 20,000 = Rs. 3,200

4. **Calculate the Third Year Commission:**
- Commission Rate: 12%
- Third Year Commission = (12/100) * 20,000 = Rs. 2,400

5. **Calculate the Fourth Year Commission:**
- Commission Rate: 10%
- Fourth Year Commission = (10/100) * 20,000 = Rs. 2,000

6. **Calculate the Commission for the Remaining Six Years:**
- Commission Rate: 4%
- Remaining Years Commission = 6 years * (4/100) * 20,000
- Remaining Years Commission = 6 * (0.04 * 20,000) = 6 * 800 = Rs. 4,800

7. **Total Commission Calculation:**
- Total Commission = First Year Commission + Bonus + Second Year Commission + Third Year Commission + Fourth Year Commission + Remaining Years Commission
- Total Commission = 4,000 + 1,000 + 3,200 + 2,400 + 2,000 + 4,800
- Total Commission = Rs. 17,400

### Final Total Commission:
- Total Commission = Rs. 17,400