Neco Model Questions Vol1 2017 Commerce Question 25

A consumer buys a refrigerator for \(\text{₦}240,000\). After 8 months it stops working because of a manufacturing defect. Under the Consumer Protection Act the consumer may obtain a refund, repair or replacement. If the consumer chooses a refund, the retailer may deduct a reasonable amount for depreciation, assuming straight‑line depreciation over a useful life of 5 years. The current market price of the same model has risen to \(\text{₦}260,000\). The consumer also considers claiming damages equal to 10\% of the purchase price for inconvenience. Calculate (a) the refund amount after depreciation, (b) the total amount the consumer would receive if he also claims the 10\% damages, and (c) compare this total with the cost of obtaining a replacement (including the price increase). Should the consumer accept the refund with damages or opt for replacement? Provide reasoning.