Waec Model Questions Vol1 2025 Commerce Question 3

Practice objective / multiple choice question 3 from the 2025 Waec Model Questions Vol1 Commerce examination.

Waec Model Questions Vol1 2025 Commerce Objective / Multiple Choice Hard Difficulty
Question 3 WAEC_MODEL_QUESTIONS_VOL1 • 2025 • COMMERCE • objective

A consumer bought a washing machine for ₦120,000 with a 2‑year manufacturer's warranty covering defects. After 18 months the machine developed a fault. The seller offers two remedies: (i) repair the machine at a cost of ₦12,000, or (ii) replace it with a new model of the same type, but the new model's price has risen by 8% due to inflation. The machine's market value depreciates linearly to 40% of its original price after 2 years. Assuming the consumer can sell the faulty machine at its current market value, which option results in the lower total out‑of‑pocket expense after accounting for the resale value, and what is that net expense?

Answer Options

A. Replace; net expense = ₦63,600
B. Repair; net expense = -₦48,000 (i.e., a saving of ₦48,000)
C. Replace; net expense = -₦5,000 (i.e., a saving of ₦5,000)
Correct Answer D. Repair; net expense = -₦54,000 (i.e., a saving of ₦54,000)
Correct Answer
D
Correct Option:
Repair; net expense = -₦54,000 (i.e., a saving of ₦54,000)

About This Question

This is Waec Model Questions Vol1 2025 Commerce Question 3. It is one of the objective questions from the 2025 Waec Model Questions Vol1 Commerce examination.

Difficulty level: Hard .

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