Waec Model Questions Vol1 2018 Commerce Question 4

Practice objective / multiple choice question 4 from the 2018 Waec Model Questions Vol1 Commerce examination.

Waec Model Questions Vol1 2018 Commerce Objective / Multiple Choice Medium Difficulty
Question 4 WAEC_MODEL_QUESTIONS_VOL1 • 2018 • COMMERCE • objective

An insurance company offers fire insurance for a warehouse with a sum insured of ₦2,000,000. The base premium rate is 0.35 % of the sum insured. A loading of 12 % is added for the high‑risk location, then a government tax of 5 % is applied to the loaded premium. The policyholder has a no‑claim bonus that gives a 10 % discount on the tax‑inclusive premium. What is the final annual premium payable? State your answer in naira to two decimal places.

Answer Options

A. 7550.55
B. 7200.00
C. 8000.00
Correct Answer D. 7408.80
Correct Answer
D
Correct Option:
7408.80

About This Question

This is Waec Model Questions Vol1 2018 Commerce Question 4. It is one of the objective questions from the 2018 Waec Model Questions Vol1 Commerce examination.

Difficulty level: Medium .

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