Maqbool got a life insurance policy of Rs. 500,000. The rate of the annual premium is 4.5% of the total policy amount, and the policy fee is 0.25% of the policy amount. What is the total annual premium?
Q1. Maqbool got a life insurance policy of Rs. 500,000. The rate of the annual premium is 4.5% of the total policy amount, and the policy fee is 0.25% of the policy amount. What is the total annual premium?
Answer: Rs. 23,750
Explanation: Annual premium = 4.5% × 500,000 = Rs.22,500; policy fee = 0.25% × 500,000 = Rs.1,250; total = Rs.23,750.