Neco Model Questions Vol1 2021 Commerce Question 11

Practice objective / multiple choice question 11 from the 2021 Neco Model Questions Vol1 Commerce examination.

Neco Model Questions Vol1 2021 Commerce Objective / Multiple Choice Medium Difficulty
Question 11 NECO_MODEL_QUESTIONS_VOL1 • 2021 • COMMERCE • objective

A motor insurance company calculates the premium for a vehicle as follows: (i) a base premium equal to \(5\%\) of the insured value; (ii) a loading of \(20\%\) of the base premium for high‑risk drivers; (iii) a government tax of \(2.5\%\) on the subtotal after loading; (iv) a discount of \(10\%\) on the total amount (including tax) for customers who pay annually. If the insured value of a car is ₦\(2{,}500{,}000\), what is the annual premium payable?

Answer Options

A. 135000
B. 140250
C. 153750
Correct Answer D. 138375
Correct Answer
D
Correct Option:
138375

About This Question

This is Neco Model Questions Vol1 2021 Commerce Question 11. It is one of the objective questions from the 2021 Neco Model Questions Vol1 Commerce examination.

Difficulty level: Medium .

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