Waec Model Questions Vol1 2022 Commerce Question 41
Practice objective / multiple choice question 41 from the 2022 Waec Model Questions Vol1 Commerce examination.
An insurance company offers a fire insurance policy with a sum insured of ₦500,000. The probability of a fire claim in a year is 0.004. The company wants to earn a profit margin of 12% on the net premium (the premium before tax). Administrative expenses are 5% of the net premium. A policy tax of 2% is imposed on the gross premium (the premium after adding expenses and profit). In addition, the company pays a 10% commission on the gross premium to its agents. What gross premium must the policyholder pay?
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About This Question
This is Waec Model Questions Vol1 2022 Commerce Question 41. It is one of the objective questions from the 2022 Waec Model Questions Vol1 Commerce examination.
Difficulty level: Medium .
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