Question

The split - up of sales of life insurance by distribution channels for India in 2012 is the same as that of Spain. If the insurance agents in India are paid a commission of 0.5% of their sales, then what is the amount of commission earned by them?

• A. $\$$ 9.5 million
• B. $\$$ 9.75 million
• C. $\$$ 10.5 million
• D. $\$$ 13.25 million

Answer 1

The correct option is C $\$$ 10.5 million

Value of life insurance sold in India by agents in 2012.
$=\frac{15000\times 14}{100}=\$2100million$
$\therefore$ Commission paid to agents or value of life insurance sold
$=\frac{2100\times 0.5}{100}=\$10.5million$