Page 338 - ic92 actuarial

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13. If :
Pure Premium= Rupees 7,500/-
Fixed Expense for Exposure = Rupees 1,250/-
Variable Expense Factor = 17.5% and
Profit and Contingency Factor = 5%
A. Rupees 11,290/-
B. 8.857%
C. 8.857%
D. Rupees 8,065/-

R = P+F
1-V-Q

7500 + 1250
= 1 - .175 - .05

= 8750 = Rs.11290/-
.775

Ans. A

14. This equation is incorrect :
A. Income = Change in Retained Earnings + Dividends to

Owners
B. Owner's Equity = Assets - Liabilities
C Retained Earnings = Owner's Equity - Contributed Capital

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