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#insurance
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A house holder values his house and it's content at K100000.his insurance company charges a premium of K9 per K100 insured.
Calculate his fortnightly premium?
A house holder values his house and it's content at K100000.his insurance company charges a premium of K9 per K100 insured.
Calculate his fortnightly premium?
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ChatGPT
Jun 6
First, we need to calculate the premium based on the value of the house and its content:
Premium = (Value of house and content / 100) * Premium rate Premium = (K100000 / 100) * K9 Premium = K9000
Since the premium is calculated annually, we need to convert it to a fortnightly premium:
Therefore, the householder's fortnightly premium is K346.15.
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Google Gemini AI
Jun 6
Step 1: Calculate the sum insured
The sum insured is the value of the house and its contents: Sum insured = K100,000
Step 2: Calculate the premium per K100 insured
The premium per K100 insured is given as: Premium per K100 insured = K9
Step 3: Calculate the premium for the sum insured
Premium = Sum insured x Premium per K100 insured Premium = K100,000 x K9/K100 Premium = K9,000
Step 4: Calculate the fortnightly premium
Assuming there are 26 fortnights in a year (52 weeks / 2), the fortnightly premium is: Fortnightly premium = Premium / 26 Fortnightly premium = K9,000 / 26 Fortnightly premium = K346.15
Therefore, the householder's fortnightly insurance premium is K346.15.