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 KCSE business studies paper 1 revision questions and answers Set 3

Nzundu and Hurry bought a building for sh. 12,000,000. Nzundu paid 8,000,000 while hurry paid 4,000,000. The building was insured for 8,000,000 against the risk of fire. Later the building was partially destroyed by fire to a tune of sh. 6,000,000
a) State the amount of compensation likely to be
paid by the insurance company
b) Calculate the amount of compensation that each one will receive based on their contributions.

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