Question

A merchant takes fire insurance policy to cover 80% of the value of his stock. Stock worth 80000 was completely destroyed in a fire and the remaining stock was reduced to 20% of its value. If the proportionate compensation is Rs 67200 find the value of stock

Answer 1

The value of the stock is Rs. 85000

Step-by-step explanation:

Let the value of the stock was V

Stock worth 80000 Rs. was destroyed in fire and remaining stock value if 20% only

After fire the remaining value of stock

$=(V-80000)\times\frac{20}{100}$

$=0.2(V-80000)$

Value of stock destroyed

$=(V-80000)-0.2(V-80000)-80000$

$=0.8(V-80000)+80000$

The insurance will cover 80% of the value of this stock

Therefore,

$[0.8(V-80000)+80000]\times\frac{80}{100}=67200$

$\implies 0.8(V-80000)+80000=\frac{67200}{0.8}=84000$

$\implies 0.8(V-80000)=84000-80000$

$\implies 0.8(V-80000)=4000$

$\implies V-80000=\frac{4000}{0.8}$

$\implies V-80000=5000$

$\implies V=80000+5000$

$\implies V=85000$ Rs.

Hope this answer is helpful.

Know More:

Q: A man purchased a scooter for Rs. 20000 and got it insured for 80%

of its value. The scooter was totally destroyed in an accident and the

insurance company compensated him for only 80% of the claim. What

was the loss suffered (in %)?​

Click Here: https://brainly.in/question/9988672

Answer 2

Given :  A merchant takes fire insurance policy to cover 80% of the value of his stock. Stock worth 80000 was completely destroyed in a fire and the remaining stock was reduced to 20% of its value. the proportionate compensation is Rs 67200

To Find : the value of stock

Solution:

Value of stock  = 1000S   Rs

Stock completely Destroyed =   Rs 80000

Remaining Stock  = 1000S - 80000  Rs

Value reduced to 20% of  its value

Reduction in value = 80 % of its value

Reduction = (80/100)(1000S - 80000)

= 800S - 64000 Rs

Total reduction or Loss  = 80000 + 800S - 64000

= 16000 + 800S  Rs

fire insurance policy to cover 80% of the value of his stock loss

= (80/100) (16000 + 800S)

= 12800 + 640S  Rs

12800 + 640S  = 67200

=> 640S  = 54400

=> S= 85

1000S = 85000

Value of Stock = Rs 85000

Learn more:

1. A man invests rs.6750 , partly in shares of 6% at rs.140 and partly ...

https://brainly.in/question/10470734

Ram and Mohan were partners sharing profits and losses in the ratio ...

https://brainly.in/question/17760054