Premium Calculation

problemsolver

New member
Joined
Sep 26, 2012
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I have a gross sum which in this example is 350.00 which is inclusive of a base premium, tax and fee.

The tax is calculated as 6% of a base premium and the fee is calculated as 2% of base premium plus tax.
The gross sum is then the sum of the above.

How to I arrive at the base premium by only knowing the gross sum and tax percentage and fee percentage?

In the above example it works out to be :

Base Premium Tax Fee Gross Sum
323.71 19.42 6.87 350.00

((323.71 + 19.42) + 6.87) = 350.00
 
I have a gross sum which in this example is 350.00 which is inclusive of a base premium, tax and fee.

The tax is calculated as 6% of a base premium and the fee is calculated as 2% of base premium plus tax.
The gross sum is then the sum of the above.

How to I arrive at the base premium by only knowing the gross sum and tax percentage and fee percentage?

In the above example it works out to be :

Base Premium Tax Fee Gross Sum
323.71 19.42 6.87 350.00

((323.71 + 19.42) + 6.87) = 350.00

Let x = base premium

So, x + 0.06x + 0.02(x + 0.06x) = 350

Solve for x.
 
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