Neco 2020 Commerce Question 43
Practice objective / multiple choice question 43 from the 2020 Neco Commerce examination.
An insurance company offers a fire insurance policy for a warehouse valued at ₦ 2,000,000. The base premium rate is \(0.3\%\) of the insured value. The company applies a loading factor of \(25\%\) because the warehouse is in a high‑risk area, and then gives a volume discount of \(10\%\) on the loaded premium if the insured value exceeds \(₦1,500,000\). Additionally, a \(5\%\) administrative surcharge is added after discounts. What is the final annual premium payable?
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About This Question
This is Neco 2020 Commerce Question 43. It is one of the objective questions from the 2020 Neco Commerce examination.
Difficulty level: Medium .
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