Question

A man purchased a car for `12 Lakhs and was insured for 80% of the cost. He sold the car at a 15% loss, but had not yet delivered it to the buyer when he met with an accident. After the accident, the car was damaged a lot and the insurance company paid 90% of the insured amount. The net difference in the two transactions is:

• A. `1.38 lakhs
• B. `92 lakhs
• C. `1.56 lakhs
• D. `88 lakhs

Answer 1

Answer: (C)