Math Is Fun Forum

phrontister

Real Member

From: The Land of Tomorrow

Registered: 2009-07-12

Posts: 4,912

Find the base cost, given the net cost after adjustments

The net cost (N) of a property's fire insurance policy comprises the following components:
   P = Premium (the base cost)   
   F = Fire Services Levy (f% of the Premium)
   S = Stamp Duty (s% of the combined Premium & Fire Services Levy)
   C = Commission (c% of the Premium)

And N = P + F + S - C.

A policyholder pays $1224.81 net (N), where...
   f = 2.5%
   s = 11%
   c = 15%

Q1. What is the amount of the policy's Premium (P) component (ie, the base cost)?
Q2. What formula with the fewest characters solves Q1?
      Note: The formula must include rate variables f, s & c.

Last edited by phrontister (2025-10-20 22:58:33)

---

"The good news about computers is that they do what you tell them to do. The bad news is that they do what you tell them to do." - Ted Nelson