Waec Model Questions Vol1 2021 Commerce Question 31
Practice objective / multiple choice question 31 from the 2021 Waec Model Questions Vol1 Commerce examination.
An insurance company offers a motor insurance policy. The expected loss per policy is 12% of the sum insured. Administrative expenses amount to 5% of the sum insured. The company wants a profit margin of 8% of the sum insured before tax. A tax of 5% is applied on the premium after adding the profit. What percentage of the sum insured should be charged as the premium? Express your answer to two decimal places.
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About This Question
This is Waec Model Questions Vol1 2021 Commerce Question 31. It is one of the objective questions from the 2021 Waec Model Questions Vol1 Commerce examination.
Difficulty level: Medium .
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