Neco 2020 Commerce Question 22

Practice objective / multiple choice question 22 from the 2020 Neco Commerce examination.

Neco 2020 Commerce Objective / Multiple Choice Medium Difficulty
Question 22 NECO • 2020 • COMMERCE • objective

An insurance company offers a 3‑year motor policy. The base annual premium is 5\% of the insured value, which is \(\mathrm{₦}2{,}400{,}000\). A loading of 12\% is added for administrative expenses and a tax of 5\% is applied on the loaded premium. If the client pays the whole 3‑year premium upfront, the company gives an 8\% discount on the total amount after loading and tax. Calculate the amount the client must pay (in ₦, to two decimal places).

Answer Options

A. 389491.00
B. 625968.00
Correct Answer C. 389491.20
D. 423360.00
Correct Answer
C
Correct Option:
389491.20

About This Question

This is Neco 2020 Commerce Question 22. It is one of the objective questions from the 2020 Neco Commerce examination.

Difficulty level: Medium .

Master the Exam!

You've seen a preview, but there are thousands more questions plus AI tutor to break down complex solutions.

Unlock Full Access Available for Android & Windows
Chat with Support