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    Practical - Insurance & Annuity With Solution

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    Yosh the bosh
    This document contains 5 questions regarding insurance and annuity calculations. Question 1 asks to calculate claim amounts from 3 insurance companies based on property values insured. Question 2 involves calculating total stock value based on insured amount and losses. Question 3 calculates insurance premium savings and loss amount borne based on property value, insured amount, and damage percentage. Question 4 finds the present value of a 3-year annuity immediate. Question 5 determines the number of years for an annuity due to accumulate a given amount based on given interest rate compounded half-yearly.

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    Practical - Insurance & Annuity With Solution

    Uploaded by

    Yosh the bosh
    18 views11 pages
    This document contains 5 questions regarding insurance and annuity calculations. Question 1 asks to calculate claim amounts from 3 insurance companies based on property values insured. Question 2 involves calculating total stock value based on insured amount and losses. Question 3 calculates insurance premium savings and loss amount borne based on property value, insured amount, and damage percentage. Question 4 finds the present value of a 3-year annuity immediate. Question 5 determines the number of years for an annuity due to accumulate a given amount based on given interest rate compounded half-yearly.

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    This document contains 5 questions regarding insurance and annuity calculations. Question 1 asks to calculate claim amounts from 3 insurance companies based on property values insured. Question 2 involves calculating total stock value based on insured amount and losses. Question 3 calculates insurance premium savings and loss amount borne based on property value, insured amount, and damage percentage. Question 4 finds the present value of a 3-year annuity immediate. Question 5 determines the number of years for an annuity due to accumulate a given amount based on given interest rate compounded half-yearly.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    18 views11 pages

    Practical - Insurance & Annuity With Solution

    Uploaded by

    Yosh the bosh
    This document contains 5 questions regarding insurance and annuity calculations. Question 1 asks to calculate claim amounts from 3 insurance companies based on property values insured. Question 2 involves calculating total stock value based on insured amount and losses. Question 3 calculates insurance premium savings and loss amount borne based on property value, insured amount, and damage percentage. Question 4 finds the present value of a 3-year annuity immediate. Question 5 determines the number of years for an annuity due to accumulate a given amount based on given interest rate compounded half-yearly.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    of 11

    Mathematics Practical No.

    3
    – Insurance & Annuity
    Q.1 A property worth ₹ 4,00,000 is insured with three companies X , Y , Z
    for amounts ₹ 1,20,000, ₹ 80,000 , and ₹ 1,00,000 respectively. A fire
    caused a loss of ₹ 2,40,000 ; Calculate the amount that can be claimed
    from the three companies.
    1 . Solution : -

    Given , Loss = ₹ 2,40,000


    Q.2 A merchant takes fire insurance policy to cover 80% of the value of
    his stock. Stock worth ₹80,000 was completely destroyed in a fire.
    While the rest of stock was reduced to 20% of its value . If the
    proportional compensation under the policy was ₹ 67,200 . Find the
    value of the stock.
    2. Solution : - ⸫ Now ,

    Let the value of the stock = .


    ⸫ Insured value of the stock = ₹ 67,200

    As A Fire broke , stock worth 80,000 completely destroyed and 67,200


    balance (
    20 % . 67,200
    ⸫ damage to balance stock = (
    =( 67,200

    ⸫ Total Loss = 67,200 ―

    =
    Hence , the book value of the stock is
    But the Claim received under the policy is 67,200 .
    Q.3 A property valued at ₹ 7,00,000 is insured to the extent of ₹
    5,60,000 at % less 20%. Calculate the saving made in the
    premium . Find the amount of loss that the owner must bear,
    including premium , if the property is damaged to the extent of
    40% of its value.
    3 Solution : - Now ,
    Since ,
    Here , Property value = ₹ 7,00,000

    Insured value = ₹ 5,60,000


    The rate of premium = % .
    ⸫ Premium = × × 5,60,000 = ₹ 3500
    ⸫ Loss that the owner bear = Loss – Claim earned + Premium paid
    But , New premium rate = % ― 20% of at
    = ― ×= = ( 2,80,000 – 2,24,000 + 2800 )
    ⸫ New premium = × × 5,60,000 = ₹ 2,800 . = ( 56,000 + 2,800 )
    = 58,800
    ⸫ saving made in the premium =

    Since, damage of the property is 40 % of its value .


    ⸫ Loss = 7,00,000 ×
    Q.4 Find the present value of an annuity immediate of ₹ 20,000 per
    annum for 3 years at 10% p.a.compounded annually.
    4 . Solution : -

    Here , Here , C = ₹ 20,000


    n=3
    r = 10 % p.a.
    ⸫ i = = = 0.1

    Since,
    ]

    ]
    Q.5 After how many years would an annuity due of ₹ 3,000 p.a.
    accumulated ₹ 19,324.80 at 20% p.a. compounded half yearly ?

    [Given (1.2)4 = 2.0736]


    5. Solution : -

    Here , , ,
    1.0736 =

    = 1.0736 + 1 =

    Now , 2.0736 =

    19,324.80
    ⸫ n = 4 years.
    19,324.80

    19,324.80

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