Gce Model Questions Vol1 2023 Commerce Question 9

Practice objective / multiple choice question 9 from the 2023 Gce Model Questions Vol1 Commerce examination.

Gce Model Questions Vol1 2023 Commerce Objective / Multiple Choice Medium Difficulty
Question 9 GCE_MODEL_QUESTIONS_VOL1 • 2023 • COMMERCE • objective

An insurance company calculates a pure premium of \(\text{₦}18{,}500\) per year for a motor policy. It adds a loading factor of 25 % to cover expenses and profit. The policy includes a deductible of \(\text{₦}2{,}000\) per claim. In a year the insured vehicle makes two claims, each with a loss of \(\text{₦}7{,}800\) before deductible. Determine the insurer's net profit (or loss) for that policy for the year.

Answer Options

A. 10600
B. 6900
C. 7525
Correct Answer D. 11525
Correct Answer
D
Correct Option:
11525

About This Question

This is Gce Model Questions Vol1 2023 Commerce Question 9. It is one of the objective questions from the 2023 Gce Model Questions Vol1 Commerce examination.

Difficulty level: Medium .

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