Question

Attempt the following:
A shop valued at Rs 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.

Answer 1

Value of the shop is Rs. $2,40,000$

It is insured for $75$% of its value

Premium rate$=90$ paise percent

$=0.9$%

Policy value$=75$% of Rs. $2,40,000$

$=\frac{75}{100}$ of Rs. $2,40,000$

=Rs. $1,80,000$

Premium amount=Premium rate $\times$ Policy value

$=\frac{9}{1000}\times$Rs. $1,80,000$

=Rs. $1620$

Premium amount to be paid in Rs. $1620$