Gce Model Questions Vol1 2018 Commerce Question 27

Practice objective / multiple choice question 27 from the 2018 Gce Model Questions Vol1 Commerce examination.

Gce Model Questions Vol1 2018 Commerce Objective / Multiple Choice Medium Difficulty
Question 27 GCE_MODEL_QUESTIONS_VOL1 • 2018 • COMMERCE • objective

A bill of exchange with a face value of \(\text{N}200{,}000\) is discounted at an annual rate of \(12\%\) for \(90\) days using the actual/365 basis. The bank also charges a handling fee equal to \(1\%\) of the face value. Calculate the discount amount, the proceeds the drawer receives, and the net proceeds after the handling fee (round to the nearest Naira).

Answer Options

A. Discount ≈ \(\text{N}5{,}918\); Net proceeds ≈ \(\text{N}194{,}082\)
Correct Answer B. Discount ≈ \(\text{N}5{,}918\); Net proceeds ≈ \(\text{N}192{,}082\)
C. Discount ≈ \(\text{N}5{,}800\); Net proceeds ≈ \(\text{N}192{,}200\)
D. Discount ≈ \(\text{N}6{,}000\); Net proceeds ≈ \(\text{N}192{,}000\)
Correct Answer
B
Correct Option:
Discount ≈ \(\text{N}5{,}918\); Net proceeds ≈ \(\text{N}192{,}082\)

About This Question

This is Gce Model Questions Vol1 2018 Commerce Question 27. It is one of the objective questions from the 2018 Gce Model Questions Vol1 Commerce examination.

Difficulty level: Medium .

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