#### Question

A shop valued at ` 2,40,000 is insured for 75% of its value. If the rate of premium is 90 paise percent, find the

premium paid by the owner of the shop.

#### Solution

Given, property value = ` 2,40,000

Rate of premium = 90 paise% = ` 0.9 %

Since, the shop is insured for 75% of its value

∴ Policy value = 75% of property value

∴ Policy value = `75/100xx240000`

` =rs180000`

Now, amount of premium = 0.9% of policy value

=` 0.9/100xx180000`

= `1620`

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#### APPEARS IN

Solution A Shop Valued at ` 2,40,000 is Insured for 75% of Its Value. If the Rate of Premium is 90 Paise Percent, Find the Premium Paid by the Owner of the Shop. Concept: Insurance and Annuity.