Gce Model Questions Vol1 2018 Computer Studies Question 19
Practice objective / multiple choice question 19 from the 2018 Gce Model Questions Vol1 Computer Studies examination.
A company can obtain a software package either by a perpetual licence or by an annual subscription. The perpetual licence costs \(\text{₦}150{,}000\). A maintenance fee equal to 20 % of the purchase price is payable each year, and each subsequent year's maintenance fee increases by 5 % over the previous year's fee. After two years, the company may purchase an upgrade for \(\text{₦}40{,}000\), which it decides to buy at the start of the third year. The subscription costs \(\text{₦}35{,}000\) per year. Over a period of three years, which option results in the lower total cost: the perpetual licence (including maintenance and upgrade) or the subscription?
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About This Question
This is Gce Model Questions Vol1 2018 Computer Studies Question 19. It is one of the objective questions from the 2018 Gce Model Questions Vol1 Computer Studies examination.
Difficulty level: Medium .
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