Gce Model Questions Vol1 2023 Commerce Question 2
Practice objective / multiple choice question 2 from the 2023 Gce Model Questions Vol1 Commerce examination.
An insurance company calculates a motor‑insurance premium as follows:\n\n- Base premium = 4% of the sum insured.\n- A loading of 25% is added for a young driver.\n- A no‑claims discount of 15% is then applied to the loaded premium.\n- Finally, a government tax of 5% is added to the discounted premium.\n\nIf the sum insured is \(\₦2{,}000{,}000\), what is the final premium payable?\n\nFurthermore, if the policyholder wishes the final premium not to exceed \(\₦120{,}000\), what is the maximum sum insured they could choose, assuming the same percentages apply?
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This is Gce Model Questions Vol1 2023 Commerce Question 2. It is one of the objective questions from the 2023 Gce Model Questions Vol1 Commerce examination.
Difficulty level: Medium .
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