Find the premium on property worth Rs.12,50,000 at 3% when the property is insured to the extent of 80% of its value

Answer

To find the premium on a property worth Rs. 12,50,000 at a rate of 3%, when the property is insured to the extent of 80% of its value, we can follow these steps:

### Step 1: Calculate the Insured Value
The insured value is 80% of the total property value.

\[ \text{Insured Value} = \frac{80}{100} \times \text{Total Property Value} \]

Substituting the given property value:

\[ \text{Insured Value} = \frac{80}{100} \times 12,50,000 \]

### Step 2: Perform the Calculation
Calculating the insured value:

\[ \text{Insured Value} = 0.8 \times 12,50,000 = 10,00,000 \]

### Step 3: Calculate the Premium
The premium is calculated as 3% of the insured value.

\[ \text{Premium} = \frac{3}{100} \times \text{Insured Value} \]

Substituting the insured value:

\[ \text{Premium} = \frac{3}{100} \times 10,00,000 \]

### Step 4: Perform the Calculation for Premium
Calculating the premium:

\[ \text{Premium} = 0.03 \times 10,00,000 = 30,000 \]

### Final Answer
The premium on the property is Rs. 30,000.

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