Neco 2021 Commerce Question 34

Practice objective / multiple choice question 34 from the 2021 Neco Commerce examination.

Neco 2021 Commerce Objective / Multiple Choice Medium Difficulty
Question 34 NECO • 2021 • COMMERCE • objective

A fire‑insurance policy for a warehouse is to be priced as follows: the pure premium is 0.35% of the insured value, an administrative loading of 25% of the pure premium is added, and a profit loading of 15% of the pure premium is also added. If the policyholder pays the annual premium in a single lump sum, a discount of 10% on the total premium (after loadings) is granted. The insured value of the warehouse is \(\,\text{₦}12,000,000\). Calculate the final annual premium payable (in Naira).

Answer Options

A. 54600
B. 58800
Correct Answer C. 52920
D. 51030
Correct Answer
C
Correct Option:
52920

About This Question

This is Neco 2021 Commerce Question 34. It is one of the objective questions from the 2021 Neco Commerce examination.

Difficulty level: Medium .

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