Neco 2023 Commerce Question 33

A consumer purchased a washing machine for \(\text{₦}120,000\). The advertisement claimed an energy rating of A++ and an annual electricity consumption of 150 kWh. In reality the machine has a rating of B and consumes 250 kWh per year. The consumer operates the machine 300 cycles per year, each cycle lasting one hour, and the electricity tariff is \(\text{₦}45\) per kWh. After two years the consumer discovers the mis‑representation and claims compensation consisting of (i) reimbursement for the excess electricity cost incurred and (ii) a statutory penalty of 20\% of the purchase price. Compute the total amount of compensation the consumer is entitled to receive.