Question

goods costing rs 12000 were insured for rs 10000 and premium at 8% p.a was paid on them

Answer 1

9200

goods 12000

inured10000

premium=10000×8%

Answer 2

GIVEN:   Goods cost = 12,000; value of goods insured = 10,000; interest rate = 8%

TO FIND:  amount of premium paid

SOLUTION: As premium will always be paid on the value of goods insured.

We will not calculate premium on the total cost of goods.

As in the question it is not given that we have to pay premium annually, monthly or quarterly.

So we will suppose that it is paid annually.

Amount of premium = $\frac{10,000}{100}$× 8

                                   = 800

Amount of  premium paid will be rupees 800.