(Answered) A car valued by the owner at pound9900 was insured for an

Economics

A car valued by the owner at £9,900 was insured for an annual premium of £360. The annual premium was paid by monthly instalments. A service charge of 7.5% of the annual premium was added.

(a) Calculate the amount of each monthly installment.

The car was damaged and a claim for repairs costing £2,100 was submitted to the insurance company. The loss assessor decided that the car had been undervalued and insured for only 90% of the full value.

Calculate:

(b) the amount of compensation received by the owner of the car

(d) the new annual premium required to insure the car at full initial value.

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