Neco Model Questions Vol1 2024 Commerce Question 44
Practice objective / multiple choice question 44 from the 2024 Neco Model Questions Vol1 Commerce examination.
An insurance company calculates the motor‑insurance premium as follows: (i) a base premium equal to 2 % of the insured value of the vehicle; (ii) a no‑claim bonus (NCB) of 15 % of the base premium for each year of claim‑free driving, up to a maximum of 45 % after three years; (iii) an additional 5 % discount on the premium after the NCB is applied if the policyholder pays the annual premium in a single lump sum; and (iv) a government levy of 2.5 % added to the premium after all discounts. A customer insures a car worth ₦3 500 000 and has a 2‑year claim‑free record. He pays the premium in a lump sum. What is the total amount he must pay (rounded to the nearest naira)?
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About This Question
This is Neco Model Questions Vol1 2024 Commerce Question 44. It is one of the objective questions from the 2024 Neco Model Questions Vol1 Commerce examination.
Difficulty level: Medium .
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