# Solve the following : A shopkeeper insures his shop and godown valued at ₹5,00,000 and ₹10,00,000 respectively for 80 % of their values. If the rate of premium is 8 %, find the total annual premium. - Mathematics and Statistics

Sum

Solve the following :

A shopkeeper insures his shop and godown valued at ₹5,00,000 and ₹10,00,000 respectively for 80 % of their values. If the rate of premium is 8 %, find the total annual premium.

#### Solution

Given, Property value of the shop = ₹5,00,000 Property value of the godown = ₹10,00,000
Since shopkeeper insures shop for 80% and godown for 80%,
∴ Policy value of shop = 80% of its property value

= (80)/(100) xx 5,00,000
= ₹4,00,000
Policy vale of godown
= 80% of its property value

= (80)/(100) xx 10,00,000 = ₹8,00,000
Rate of premium is 8% for the shop as well as for godown.
∴ Amount of premium for the shop
= 8% of its policy value

= (8)/(100) xx 4,00,000 = ₹32,000
∴ Amount of premium for the shop
= 8% of its policy value

= (8)/(100) xx 8,00,000 = ₹64,000
∴ Total premium = amount of premium for the shop + amount of premium for the godown
= 32,000 + 64,000
= ₹96,000
∴ Total premium payable by the shopkeeper is ` 96,000.

Concept: Annuity
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Chapter 2: Insurance and Annuity - Miscellaneous Exercise 2 [Page 30]

#### APPEARS IN

Balbharati Mathematics and Statistics 2 (Commerce) 12th Standard HSC Maharashtra State Board
Chapter 2 Insurance and Annuity
Miscellaneous Exercise 2 | Q 4.02 | Page 30
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