Given that
The premium on an insurance policy is 20% for the first year, 15% for the 2nd year, and 10% for the third year. And the policy is of $40000
Explanation -
The premium paid for 1st year is 20% i.e
![\begin{gathered} Premium\text{ for 1st year = 20\% of \$40000} \\ Premium\text{ for 1st year =}(20)/(100)*40000=20*400=\text{ \$}8000 \\ TOTAL\text{ AMOUNT = \$40000 + \$8000 = \$48000} \\ Prem\imaginaryI um\text{ for 2nd year=15}\operatorname{\%}\text{of}\operatorname{\$}\text{*48,000} \\ Prem\mathrm{i}um\text{ for 2nd year=}(15)/(100)*48000=15*480=\text{ \$7200} \\ NEWAMOUNT\text{ = \$48000 + \$7200= \$55200} \\ Prem\mathrm{i}um\text{ for 3rd year=10\% of 55200} \\ Prem\mathrm{i}um\text{ for 3rd year=}(10)/(100)*55200\text{ = }10*552=\text{ \$5520} \end{gathered}]()
So the total premium paid will be $8000 + $7200 + $5520 = $20720
Hence, the final answer will be $20720