Waec Model Questions Vol1 2018 Commerce Question 39
Practice objective / multiple choice question 39 from the 2018 Waec Model Questions Vol1 Commerce examination.
A motor insurance policy covers a car with an insured value of N2,000,000. The insurer charges a premium equal to 2% of the insured value and adds a loading of 15% on the premium for administrative expenses. A policy tax of 5% is then applied on the premium after loading. If the insured suffers a total loss, the insurer will pay the insured value less a depreciation of 10% for the car's age. Calculate (a) the total amount the policyholder must pay (premium plus tax) and (b) the amount the insurer will pay the insured in case of total loss.
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About This Question
This is Waec Model Questions Vol1 2018 Commerce Question 39. It is one of the objective questions from the 2018 Waec Model Questions Vol1 Commerce examination.
Difficulty level: Medium .
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