Waec Model Questions Vol1 2019 Commerce Question 10
Practice objective / multiple choice question 10 from the 2019 Waec Model Questions Vol1 Commerce examination.
A motorist buys a comprehensive insurance policy for a car valued at ₦2,500,000. The base premium is 4% of the insured value. The insurer adds a loading of 25% because the car is kept in a high‑risk area and also adds a surcharge of 10% because the driver is 23 years old. A policy tax of 5% is then applied to the premium after loading and surcharge. The driver had no claims in the previous year, so a no‑claim bonus (NCB) of 15% is granted on the premium after loading and surcharge but before tax. Calculate the final premium payable (rounded to the nearest naira) and state the minimum claim amount that would make the driver break even (i.e., the claim amount equals the premium paid).
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About This Question
This is Waec Model Questions Vol1 2019 Commerce Question 10. It is one of the objective questions from the 2019 Waec Model Questions Vol1 Commerce examination.
Difficulty level: Hard .
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