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Question
A cargo of rice was insured at 0.625% to cover 80% of its value. The premium paid was ₹5,250. If the price of rice is ₹21 per kg, find the quantity of rice (in kg) in the cargo.
Solution
Let the property value of the cargo be ₹ x.
Since, the cargo was insured for 80% of its value,
∴ Policy value = 80% of property value
= `(80)/(100) xx x`
= `(4x)/(5)`
Rate of premium = 0.625%
Amount of premium = ₹5,250
Amount of premium = 0.625% of policy value
∴ 5,250 = `(0.625)/(100) xx (4x)/(5`
∴ x = `(5,250 xx 100 xx 5)/(0.625 xx 4)`
∴ x = ₹10,50,000
∴ Property value of cargo is ₹10,50,000.
i.e., cargo containss rice worth ₹10,50,000
Per kg rate of rice is ₹21.
∴ Capacity of the cargo = `"Value of the cargo"/"Price of 1kg rice"`
= `(10,50,000)/(21)`
= 50,000 kgs
∴ The cargo contains 50,000 kgs of rice.
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