> #finance , #insurance > 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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Ezichael John
Jun 6

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:

Fortnightly premium = Annual premium / 26
Fortnightly premium = K9000 / 26
Fortnightly premium = K346.15

Therefore, the householder's fortnightly premium is K346.15.
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G
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.
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