Neco Model Questions Vol1 2025 Commerce Question 34
Practice objective / multiple choice question 34 from the 2025 Neco Model Questions Vol1 Commerce examination.
An insurance company issues a fire‑insurance policy. The expected loss per policy is N5,000. The company adds a loading equal to 20\% of the expected loss to cover administrative expenses, and a tax of 5\% on the premium. In addition, the company wants to earn a profit equal to 10\% of the premium after tax. Determine (a) the premium that should be charged for each policy (rounded to the nearest Naira), and (b) the total expected profit for 150 policies (rounded to the nearest Naira).
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About This Question
This is Neco Model Questions Vol1 2025 Commerce Question 34. It is one of the objective questions from the 2025 Neco Model Questions Vol1 Commerce examination.
Difficulty level: Medium .
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