Waec Model Questions Vol1 2019 Commerce Question 44
Practice objective / multiple choice question 44 from the 2019 Waec Model Questions Vol1 Commerce examination.
An insurance company offers a motor policy with a base premium of ₦45,000. The premium is increased by a loading of 12% to cover administrative expenses, and a tax of 5% is then applied on the loaded premium (the tax is payable by the insurer). A policyholder makes a claim of ₦120,000. After a deductible of ₦10,000 the insurer pays 80% of the remaining claim amount. What is the insurer's net profit or loss on this policy?
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About This Question
This is Waec Model Questions Vol1 2019 Commerce Question 44. It is one of the objective questions from the 2019 Waec Model Questions Vol1 Commerce examination.
Difficulty level: Medium .
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