Gce Model Questions Vol1 2018 Commerce Question 39
Practice objective / multiple choice question 39 from the 2018 Gce Model Questions Vol1 Commerce examination.
An insurance company offers a 3‑year endowment policy with a sum assured of \(\text{N}500{,}000\). The pure risk premium (present value of benefits) is estimated at \(\text{N}300{,}000\). The company adds a loading of 12% of the pure premium for administrative expenses and a profit margin of 8% of the pure premium. The policyholder may pay the premium annually in advance. If the first annual premium is paid in full and the insurer grants a 10% rebate on the second and third annual premiums, calculate the amount of the first premium and the amount of each of the second and third premiums (rounded to the nearest naira).
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About This Question
This is Gce Model Questions Vol1 2018 Commerce Question 39. It is one of the objective questions from the 2018 Gce Model Questions Vol1 Commerce examination.
Difficulty level: Medium .
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