Answer:
72 is the premimum of the insurance.
Explanation:
Below is the given values:
The loading = 0.4
Coinsurance rate = 0.2
Number of units = 100
Total number of units = 100 * 0.4 = 40
Remaining units = 60 * 0.2 = 12
Add the 60 and 12 values = 60 + 12 = 72
Thus, 72 is the premimum of the insurance.
