Neco Model Questions Vol1 2021 Commerce Question 50
Practice objective / multiple choice question 50 from the 2021 Neco Model Questions Vol1 Commerce examination.
An insurance company calculates the motor insurance premium as follows: the base premium is \(3\%\) of the insured value of the vehicle; a loading of \(25\%\) is added for high‑risk drivers; a government tax of \(5\%\) is then applied on the loaded premium; finally, a loyalty discount of \(10\%\) is given on the amount after tax for customers who have been with the company for more than three years. If a customer insures a vehicle worth ₦4,800,000 and qualifies for the loyalty discount, what is the final annual premium the customer must pay (in Naira)?
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About This Question
This is Neco Model Questions Vol1 2021 Commerce Question 50. It is one of the objective questions from the 2021 Neco Model Questions Vol1 Commerce examination.
Difficulty level: Medium .
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