Gce Model Questions Vol1 2017 Commerce Question 15

A company receives a purchase order worth ₦2,500,000 with the following payment schedule: 30 % on signing, 40 % after delivery, and the remaining 30 % 60 days after delivery. A volume rebate of 5 % is offered on the portion of the contract value exceeding ₦1,800,000; the rebate is paid with the final instalment. If delivery is delayed by 12 days beyond the agreed 20‑day window, a penalty of 0.2 % per day is applied to the amount due on the delivery payment. Compute (a) the total amount the buyer must pay, (b) the date on which the final payment is due (in days after signing), and (c) the effective annualised cost of the late‑delivery penalty as a percentage of the contract value, assuming a 365‑day year.