Waec Model Questions Vol1 2021 Commerce Question 48

Practice objective / multiple choice question 48 from the 2021 Waec Model Questions Vol1 Commerce examination.

Waec Model Questions Vol1 2021 Commerce Objective / Multiple Choice Medium Difficulty
Question 48 WAEC_MODEL_QUESTIONS_VOL1 • 2021 • COMMERCE • objective

An insurance company offers a 3‑year motor insurance policy. The base annual premium is ₦120,000. The company adds an administrative loading of 18% and a risk loading of 12% on the base premium. After adding the loadings, a policy tax of 5% is applied on the total premium. If the insurer gives a 10% discount on the total premium for policies paid in full for the 3‑year period, find (i) the amount the policyholder must pay for the 3‑year policy and (ii) the effective annual cost after the discount.

Answer Options

A. ₦491,400; ₦163,800
Correct Answer B. ₦442,260; ₦147,420
C. ₦401,436; ₦133,812
D. ₦437,400; ₦145,800
Correct Answer
B
Correct Option:
₦442,260; ₦147,420

About This Question

This is Waec Model Questions Vol1 2021 Commerce Question 48. It is one of the objective questions from the 2021 Waec Model Questions Vol1 Commerce examination.

Difficulty level: Medium .

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