Car Insurance Example

Here is another example problem that calls for nested IFs:

An insurance company wants a program to calculate the annual premium for car insurance.

• The base rate is the annual premium in dollars for the car.
• The base rate is determined by the year and model of the car.
• A 5% discount applies to cars driven less than 20,000 miles a year.
• A 10% discount applies to cars driven less than 10,000 miles a year.

Our program will ask the user to enter the base rate from the keyboard. (A practical program would have this information in a file on the hard disk.)

The program will start out asking the user for data: the BASERATE and the annual mileage. Then the program will look the the mileage to figure out the DISCOUNT. The DISCOUNT will be 0.0, 0.05, or 0.10 depending on the mileage. The program will look like this:

PRINT "Please enter the base rate"
INPUT BASERATE

PRINT "Please enter annual mileage"
INPUT MILEAGE

Figure out the DISCOUNT

PRINT "Your base rate is", BASERATE
PRINT "Your discount is", DISCOUNT
PRINT "You pay", BASERATE * (1 - DISCOUNT)

END