Neco 2017 Commerce Question 11

A consumer purchases a television with a marked price of \(\N120,000\). The seller offers a \(10\%\) discount on the marked price and then adds a sales tax of \(5\%\) on the discounted price. After purchase the TV is found to be defective. Under the Consumer Protection Act the consumer may claim a refund equal to the amount actually paid plus a statutory penalty of \(15\%\) of the purchase price (before tax). The seller, however, offers to repair the TV for a fixed cost of \(\N8,000\). Determine (i) the total cash amount the consumer would receive if he claims a refund, (ii) the total cash outflow if he accepts the repair, and (iii) which option gives the greater monetary benefit.