Waec Model Questions Vol1 2021 Commerce Question 21

Practice objective / multiple choice question 21 from the 2021 Waec Model Questions Vol1 Commerce examination.

Waec Model Questions Vol1 2021 Commerce Objective / Multiple Choice Medium Difficulty
Question 21 WAEC_MODEL_QUESTIONS_VOL1 • 2021 • COMMERCE • objective

An insurance company offers a policy with a sum assured of ₦500,000. The base premium is calculated as a percentage r of the sum assured. The company adds a loading of 20% on the base premium, then gives a 10% early‑payment discount on the loaded premium, and finally applies a 5% policy tax on the discounted amount. If the client pays a total premium of ₦4,600, what is the base premium rate r (in %), correct to two decimal places?

Answer Options

Correct Answer A. 0.81
B. 0.90
C. 0.85
D. 0.75
Correct Answer
A
Correct Option:
0.81

About This Question

This is Waec Model Questions Vol1 2021 Commerce Question 21. It is one of the objective questions from the 2021 Waec Model Questions Vol1 Commerce examination.

Difficulty level: Medium .

Master the Exam!

You've seen a preview, but there are thousands more questions plus AI tutor to break down complex solutions.

Unlock Full Access Available for Android & Windows
Chat with Support