Neco Model Questions Vol1 2022 Commerce Question 16
Practice objective / multiple choice question 16 from the 2022 Neco Model Questions Vol1 Commerce examination.
An insurance company calculates the premium for a motor policy as follows: the base premium is increased by a risk loading equal to \(20\%\) of the base premium; a tax of \(5\%\) is then applied to the sum of the base premium and the risk loading; finally, an agent's commission of \(2\%\) is added on the amount after tax. If the customer pays a total premium of ₦120 000, what is the base premium (in naira)?
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About This Question
This is Neco Model Questions Vol1 2022 Commerce Question 16. It is one of the objective questions from the 2022 Neco Model Questions Vol1 Commerce examination.
Difficulty level: Medium .
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