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Determining the net annual premium

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Reference no: EM131088404

A delivery van can be insured for a net annual premium of £861.64.

The net premium may be paid in 52 equal weekly installments, but then a charge of £1.10 is added to each installment.

(a) Calculate the amount of each installment.

(b) Calculate the annual cost of the extra charge and express it as a percentage of the net annual premium.

The van owner receives a no claims discount of 45% of the gross annual premium.

(c) Calculate the gross annual premium.

The van owner finds an Irish insurer who offers to insure the van for a weekly installment of €23.

(d) Given an exchange rate of €1.35 = £1, convert this installment into pounds, and advise the van owner.

Reference no: EM131088404

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