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