Neco Model Questions Vol1 2017 Commerce Question 11
Practice objective / multiple choice question 11 from the 2017 Neco Model Questions Vol1 Commerce examination.
An insurance company offers a motor insurance policy. The basic premium is calculated at a rate of 2.5 % of the sum insured. The company adds a loading of 15 % on the basic premium to cover administrative expenses. A government tax of 5 % is then applied on the loaded premium. Finally, the insurer gives a discount of 10 % on the total amount (loaded premium + tax) to attract customers. If the sum insured is ₦(1,200,000), what is the final premium payable by the policyholder? Express your answer in naira to the nearest kobo.
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About This Question
This is Neco Model Questions Vol1 2017 Commerce Question 11. It is one of the objective questions from the 2017 Neco Model Questions Vol1 Commerce examination.
Difficulty level: Medium .
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