Gce Model Questions Vol1 2021 Commerce Question 1
Practice objective / multiple choice question 1 from the 2021 Gce Model Questions Vol1 Commerce examination.
An exporter in Nigeria is to receive a payment of US\$\(50{,}000\) for a shipment. The receiving bank charges a commission of \(1.5\%\) on the Naira amount it converts, and applies a foreign‑exchange rate of \(\text{₦}780\) per US\$, but adds a spread of \(2\%\) (i.e., it uses a rate \(2\%\) lower than the quoted rate). After the conversion, the exporter must also pay a customs duty of \(5\%\) on the Naira value of the goods. Assuming the duty is calculated on the converted amount before the commission is deducted, what is the net amount in Naira that the exporter finally receives?
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About This Question
This is Gce Model Questions Vol1 2021 Commerce Question 1. It is one of the objective questions from the 2021 Gce Model Questions Vol1 Commerce examination.
Difficulty level: Medium .
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