Gce Model Questions Vol1 2021 Commerce Question 21
Practice objective / multiple choice question 21 from the 2021 Gce Model Questions Vol1 Commerce examination.
A motor insurance policy has a basic premium of ₦120,000. The insurer adds a loading of \(12\%\) for a high‑risk area, then applies a government tax of \(5\%\) on the loaded premium. After issuing the policy, the insurer offers an early‑payment discount of \(8\%\) on the final premium. During the year a claim of ₦45,000 is paid. What is the insurer's net profit from this policy (in naira)?
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About This Question
This is Gce Model Questions Vol1 2021 Commerce Question 21. It is one of the objective questions from the 2021 Gce Model Questions Vol1 Commerce examination.
Difficulty level: Medium .
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