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.
(b the amount of compensation received by the owner of the car
(c) the full value of the car as decided by the loss assessor
(d) the new annual premium required to insure the car at full initial value.