Neco Model Questions Vol1 2017 Commerce Question 7
Practice objective / multiple choice question 7 from the 2017 Neco Model Questions Vol1 Commerce examination.
An insurance company estimates the average loss per motor policy to be \(\text{₦}120{,}000\). It adds a loading of 25% of the expected loss, then applies a 5% tax on the premium, and finally offers a 10% discount for early payment. (a) Calculate the final premium payable by a customer. (b) If the company wants to earn a total profit of \(\text{₦}2{,}000{,}000\) from this policy, assuming actual losses equal the expected loss, how many such policies must be sold?
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About This Question
This is Neco Model Questions Vol1 2017 Commerce Question 7. It is one of the objective questions from the 2017 Neco Model Questions Vol1 Commerce examination.
Difficulty level: Medium .
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