Neco 2020 Commerce Question 27

Practice objective / multiple choice question 27 from the 2020 Neco Commerce examination.

Neco 2020 Commerce Objective / Multiple Choice Hard Difficulty
Question 27 NECO • 2020 • COMMERCE • objective

A consumer purchases a refrigerator for \text{₦}120,000 with a 2‑year warranty that covers repair costs only. After \(8\) months the refrigerator fails. The repair shop quotes \text{₦}18,000 for parts and labour. The consumer also claims depreciation compensation based on straight‑line depreciation over an expected useful life of \(5\) years. Under the consumer protection law, the consumer may either have the seller pay for the repair or receive a cash refund equal to the purchase price minus depreciation, whichever amount is lower. What amount is the consumer entitled to claim if he prefers a cash refund?

Answer Options

A. 20000
B. 104000
C. 16000
Correct Answer D. 18000
Correct Answer
D
Correct Option:
18000

About This Question

This is Neco 2020 Commerce Question 27. It is one of the objective questions from the 2020 Neco Commerce examination.

Difficulty level: Hard .

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