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Mr Ngoe had an accident with his car, and the cost of the repair is £2,600. His insurers discover that the car was insured for only 70% of its value, and so pay only 70% of the cost of repair.
Calculate
(i) the amount of the repair cost that he will have to pay himself
(ii) the true value of the car as used by the insurers.
The following year, he insures his car with a continental insurer for €1,950 at an exchange rate of €1 = £0.84.
Calculate the cost of the insurance in pounds sterling
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