Neco 2025 Commerce Question 9

Practice objective / multiple choice question 9 from the 2025 Neco Commerce examination.

Neco 2025 Commerce Objective / Multiple Choice Medium Difficulty
Question 9 NECO • 2025 • COMMERCE • objective

A motor insurance company calculates the premium for a vehicle as follows: (i) a base premium equal to 3% of the insured value; (ii) a loading of 25% added for high‑risk drivers; (iii) a policy tax of 5% applied on the loaded premium; (iv) a discount of 10% granted to customers who have a two‑year no‑claim bonus. For a vehicle with an insured value of \(\text{₦}2,500,000\) owned by a high‑risk driver who also enjoys the two‑year no‑claim bonus, determine the final annual premium payable. State your answer in naira to two decimal places.

Answer Options

A. 84375.00
B. 98437.50
Correct Answer C. 88593.75
D. 85050.00
Correct Answer
C
Correct Option:
88593.75

About This Question

This is Neco 2025 Commerce Question 9. It is one of the objective questions from the 2025 Neco Commerce examination.

Difficulty level: Medium .

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