Question

A tempo is insured to the extent of $\frac{4}{5}$ of its original value. If the premium on it at the rate of 1.3 percent amounts to Rs. 910, the original value of the tempo is :

• A. Rs. 78500
• B. Rs. 80000
• C. Rs. 82500
• D. Rs. 87500

Answer 1

The correct option is D Rs. 87500

Let the original value of the tempo be Rs. x then,
1.3% of $\frac{4}{5}ofx=910\Rightarrow \frac{13}{10}\times \frac{1}{100}\times \frac{4}{5}x=910$
$\Rightarrow =\left(\frac{910\times 10\times 100\times 5}{13\times 4}\right)=87500$