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Guys see this question:

For what sum should goods worth Rs. 1150 be insured at 8% so that in case of loss the owner may recover the premium as well as the goods?

I can't understand the meaning of the question.

I don't want any hints or solutions, but just can someone explain me what to do?

Thanks for the help.

codetalker
  • 2,419

1 Answers1

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The way I read the question, you are declaring a value of $x$ on the insured goods. You are paying a premium of $0.08x$. When you claim you will get back exactly $x$ (the insured value). This amount should be equal to the cost of the goods (Rs $1150$) plus the premium paid. Can you set up the equation and solve it?

Deepak
  • 26,801