## ооHazoorilal took a whole life plan of Rs60,000. He is 48 years old. He pays ayearly premium of Rs 2000. I

Question

оо
Hazoorilal took a whole life plan of Rs

60,000. He is 48 years old. He pays a
yearly premium of Rs 2000. In the tenth
year of the policy, he was unable to pay the
premium on time. As per the company rule,
a surcharge of 3% per month is levied for
delay in payment of premium. Hazoorilal
paid the premium 3 months after the due
date. How much extra amount will he be
paying for that year?​

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5 months 2021-07-08T02:43:11+00:00 1 Answers 1 views 0

1. Given :  He pays a yearly premium of Rs 2000.

he was unable to pay the premium on time

As per the company rule, a surcharge of 3% per month is levied for

Hazoorilal paid the premium 3 months after the due date

To Find :  How much extra amount will he be paying for that year

Solution:

Premium to be paid  = Rs 2000

Surcharge of 3% per month

Hazoorilal paid the premium 3 months after the due date

Considering simple interest surcharge

Surcharge = 2000 * 3  * 3 / 100  = Rs 180

Extra amount paid = Rs 180

Premium paid = 2000 + 180 = Rs 2180

Considering Compound interest

A = 2000( 1 + 3/100)³ = 2,185.454

Extra amount paid = 2,185.454 – 2000 = Rs 185.454