Gce Model Questions Vol1 2021 Commerce Question 11
Practice objective / multiple choice question 11 from the 2021 Gce Model Questions Vol1 Commerce examination.
An insurer calculates the motor‑vehicle premium as follows: the base premium is \(0.4\%\) of the vehicle's market value. A loading of \(15\%\) is added for drivers under 25 years old. After one year the driver turns 25, so the loading is removed, and a no‑claims discount of \(5\%\) is then applied to the premium (after the loading has been removed). Finally, a government tax of \(2\%\) is added to the discounted premium. If the vehicle's market value is \(\text{₦}1{,}200{,}000\), what is the final annual premium payable after the driver turns 25? Give your answer in naira to two decimal places.
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About This Question
This is Gce Model Questions Vol1 2021 Commerce Question 11. It is one of the objective questions from the 2021 Gce Model Questions Vol1 Commerce examination.
Difficulty level: Medium .
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