Waec Model Questions Vol1 2017 Commerce Question 37

Practice objective / multiple choice question 37 from the 2017 Waec Model Questions Vol1 Commerce examination.

Waec Model Questions Vol1 2017 Commerce Objective / Multiple Choice Medium Difficulty
Question 37 WAEC_MODEL_QUESTIONS_VOL1 • 2017 • COMMERCE • objective

An insurer calculates a one‑year motor insurance premium as follows: a base premium is first increased by a 20% loading to cover risk, then a 5% tax is added to the loaded premium. Expected claims amount to 55% of the loaded premium and administrative expenses are 12% of the loaded premium. The insurer wants to earn a net profit of ₦2,500. What is the base premium, rounded to the nearest naira?

Answer Options

A. 5600
B. 5800
Correct Answer C. 5482
D. 5300
Correct Answer
C
Correct Option:
5482

About This Question

This is Waec Model Questions Vol1 2017 Commerce Question 37. It is one of the objective questions from the 2017 Waec Model Questions Vol1 Commerce examination.

Difficulty level: Medium .

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