Waec Model Questions Vol1 2022 Commerce Question 36
Practice objective / multiple choice question 36 from the 2022 Waec Model Questions Vol1 Commerce examination.
An insurance company offers a motor insurance policy. The gross premium is 8% of the sum insured. The company adds a loading of 12% on the gross premium to cover administrative expenses, then applies a government tax of 5% on the loaded premium. A discount of 3% is given on the amount after tax for early payment. If the sum insured is ₦2,500,000 and the company expects to pay out claims amounting to 60% of the gross premium, what is the insurer's expected profit (net premium received minus claims)?
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About This Question
This is Waec Model Questions Vol1 2022 Commerce Question 36. It is one of the objective questions from the 2022 Waec Model Questions Vol1 Commerce examination.
Difficulty level: Medium .
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