Question

Solve the following :

15,000 articles costing ₹200 per dozen were insured against fire for ₹1,00,000. If 20 % of the articles were burnt completely and 2400 of other articles were damaged to the extent of 80% of their value, find the amount that can be claimed under the policy.

Answer 1

Given, Total number of articles = 15,000,
Cost of articles = ₹200 per dozen

∴ Cost of one article ₹ `(200)/(12)`.
Policy value = ₹ 1 lakh
Cost of 15,000 articles (property value)
= cost of one article x number of articles

= `(200)/(12) xx 15,000` = ₹2,50,000
Now, 20% of the articles were completely burnt.
∴ Number of articles burnt = 20% of total articles

= `(20)/(100) xx 15,000`
= 3,000
Cost of 3,000 burnt articles = cost of one article x number of articles

= `(200)/(12) xx 3,000` = ₹50,000
Also, 2,400 articles were damaged to the extent of 80% of their value.
∴ Cost of 2,400 articles  = `(200)/(12) xx 2,400`
= ₹40,000
∴ Loss on 2,400 articles = 80% of cost value

= `(80)/(100) xx 40,000`
= ₹32,000
∴ Total loss = Cost of 3,000 burnt articles + Loss on 2,400 articles
= 50,000 + 32,000
= ₹82,000

Claim = `"Policy value"/"Property value" xx "Loss"`

= `(1,00,000)/(2,50,000) xx 82,000` = ₹32,800
∴ Amount that can be claimed under the policy is ₹32,800.