Answer:
Step-by-step explanation:
Premium liability of 2020
(480000 x .4 - 100000)x 1/8 x 5
= 57500
Premium liability of 2021
(590000 x .4 - 150000) x 1/8 x 5
= 53750
Total liability at 2021
= 57500 + 53750
= 111250
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