Question

A cargo of rice was insured at 0.625 % to

cover 80% of its value. The premium paid

was Rs.5250. 1f the price of rice is Rs.21

per kg. find the quantity of rice (in kg) in

the cargo.​

Answer 1

let the property value of cargo be x

Since, the cargo was insured for 80% of its value

therefore, policy value = 80% of property value

=8/100*x = 4x/5

Rate of premium = 0.625%

Amount of premium = 5,250

Amount of premium = 0.625% of policy value

therefore, 5,250 = 0.625/100 * 4x/5

therefore, X = 5250 * 100 * 5 / 0.625 * 4

therefore x = 10,50,000

therefore, property value of the cargo is Rs 10,50,000

i.e., cargo contains rice worth Rs 10,50,000

per kg rate of rice is Rs 21

therefore, capacity of the cargo =

value of cargo/price of 1kg rice

= 10,50,000/21

= 50,000kgs

therefore, the cargo contains 50,000 kgs of rice.