Neco 2022 Commerce Question 25

A consumer bought a television for \(\text{₦}120,000\) on credit but the seller failed to deliver. The consumer cancelled the contract. Under the Consumer Protection Act the seller must refund the purchase price within 30 days; if the refund is delayed, the seller must pay interest at \(18\%\) per annum compounded monthly on the amount due, plus a fixed penalty of \(\text{₦}5,000\). The seller refunded the amount after 75 days. (i) Calculate the total amount the seller must pay to the consumer (principal + interest + penalty). (ii) The consumer also proved a loss of \(\text{₦}10,000\) due to the delay. Is the consumer entitled to claim this additional loss? State the total amount payable if the additional loss is recoverable.