Post Utme Elizade University 2017 Commerce Question 22

Practice objective / multiple choice question 22 from the 2017 Post Utme Elizade University Commerce examination.

Post Utme Elizade University 2017 Commerce Objective / Multiple Choice

Question 22 POST_UTME_ELIZADE_UNIVERSITY • 2017 • COMMERCE • objective

A life insurance policy has a premium of ₦500,000 per annum. If the policyholder dies after 5 years, the insurance company pays a lump sum of ₦10 million. What is the present value of the policy if the discount rate is 8% per annum?

Answer Options

A. ₦2,500,000

B. ₦3,000,000

Correct Answer C. ₦3,500,000

D. ₦4,000,000

Correct Answer

Correct Option:

₦3,500,000

About This Question

This is Post Utme Elizade University 2017 Commerce Question 22. It is one of the objective questions from the 2017 Post Utme Elizade University Commerce examination.

View More Post Utme Elizade University 2017 Commerce Questions More Post Utme Elizade University Practice Questions Back to Questions

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