Asked in PPSC, FPSC and other one-paper exams (compiled from unofficial resources).
Financial MathematicsInvestment & Risk Management
Ali got a life insurance policy of Rs. $500{,}000$. The rate of annual premium is $4.5\%$ of the total amount of the policy, whereas the policy fee is at the rate of $0.25\%$. Find the annual premium of the policy.
- A.Rs. $23{,}750$Correct answer
- B.Rs. $22{,}500$
- C.Rs. $25{,}000$
- D.Rs. $21{,}250$
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Practice these MCQs in the appQuick fact: The annual premium is calculated as $(4.5\% + 0.25\%) \times 500{,}000 = 4.75\% \times 500{,}000 =$ Rs. $23{,}750$.