Gce Model Questions Vol1 2022 Commerce Question 35
Practice objective / multiple choice question 35 from the 2022 Gce Model Questions Vol1 Commerce examination.
An insurance policy's premium is calculated as 2 % of the sum insured plus a fixed administrative fee of \(\text{₦}5,000\). For high‑risk items a loading of 15 % is added to the premium, but a client with a two‑year no‑claims bonus receives a 50 % reduction in this loading. The insurer also offers a 10 % discount on the premium if the client pays annually instead of semi‑annually.\n\nA client wishes to insure an item with a sum insured of \(\text{₦}1,200,000\) and has a two‑year no‑claims bonus.\n\n(a) Compute the annual premium after applying the loading reduction and the annual‑payment discount.\n(b) Compute the total amount payable if the client chooses to pay semi‑annually (no discount).
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This is Gce Model Questions Vol1 2022 Commerce Question 35. It is one of the objective questions from the 2022 Gce Model Questions Vol1 Commerce examination.
Difficulty level: Medium .
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