1. Calculation of cargo insurance premium (show your work)

Calculate the 110% CIP value and insurance premium for the following cargo:

Five 40-ft containers said to contain electrical equipment

Invoice value of the cargo: CAN $ 125,000.00

Ocean freight Montreal to Hamburg: US $2100.00 / container

Pre-carriage Kingston to Montreal all in: CAN $ 500.00 /container

All risk marine premium rate at 0.30%

The exchange rate is US $ 1.00 = CAN $ 1.25

2. Calculate the 110% CIP value and insurance premium for the following cargo:

Seven 40-ft containers said to contain electrical equipment

Invoice value of the cargo: CAN $ 140,000.00

Ocean freight Montreal to Hamburg: US $ 2100.00 / container

Pre-carriage Kingston to Montreal all in: CAN $ 500.00 /container

All risk marine premium rate at 0.35%

The exchange rate is US $ 1.00 = CAN $ 1.3

Note: all charges in CAD

Commercial invoice value: CAN $ 140,000.00

Freight: US $ 2100.00 *7 = $ 14,700*1.3= CAD $19,110

Pre carriage : CAD $ 3,500

Cost and Freight: CAD $ 162,610

Estimated insurance premium: (.35%): CAD$ 569.14

Cost, Insurance and freight: CAD $ 163,179.14

110% of Cost, Insurance and Freight: CAD $ 179,497.05

Insurance premium (@ 0.35%):CAD $ 628.24