Neco 2022 Commerce Question 48
Practice objective / multiple choice question 48 from the 2022 Neco Commerce examination.
An insurance company offers a life‑insurance policy with a base premium rate of 0.8% of the sum insured per annum for persons aged 30-40 and 1.2% for persons aged 41-50. For each additional \(\text{₦}100,000\) of sum insured above \(\text{₦}500,000\) an extra loading of 0.05% of the sum insured is added. A policyholder aged 45 wishes to insure a sum of \(\text{₦}1,200,000\). The company gives a 10% discount on the total premium if the policy is paid annually for 5 years in advance. What is the annual premium payable after the discount (in naira)?
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About This Question
This is Neco 2022 Commerce Question 48. It is one of the objective questions from the 2022 Neco Commerce examination.
Difficulty level: Medium .
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