Neco 2018 Commerce Question 39
Practice objective / multiple choice question 39 from the 2018 Neco Commerce examination.
An insurance company offers a motor insurance policy. The expected annual loss per policy is ₦45,000. The company adds a loading of 25\% to cover administrative expenses and a premium tax of 5\% on the loaded premium. If the final premium charged to a policyholder is ₦73,125, what is the loading percentage actually applied (i.e., the percentage increase over the expected loss before tax)?
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About This Question
This is Neco 2018 Commerce Question 39. It is one of the objective questions from the 2018 Neco Commerce examination.
Difficulty level: Medium .
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