Neco 2025 Commerce Question 44
Practice objective / multiple choice question 44 from the 2025 Neco Commerce examination.
An insurance company offers fire insurance for a warehouse with an insured value of ₦2,000,000. Historical data shows the probability of a fire in a year is 0.004 and, if a fire occurs, the average loss is 70% of the insured value. The company wishes to set a premium that covers the expected loss plus a loading of 30% for administrative expenses and profit. Compute the annual premium per policy in Naira.
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About This Question
This is Neco 2025 Commerce Question 44. It is one of the objective questions from the 2025 Neco Commerce examination.
Difficulty level: Medium .
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