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