Neco Model Questions Vol1 2017 Commerce Question 41
Practice objective / multiple choice question 41 from the 2017 Neco Model Questions Vol1 Commerce examination.
A consumer purchases a television with a marked price of \(\text{₦}120,000\). He pays a \(30\%\) deposit and finances the balance at a simple annual interest rate of \(12\%\) for \(2\) years. After \(6\) months the TV fails, and the seller offers to replace it with a new TV of the same model. The replacement deal includes a \(15\%\) reduction on the interest rate (i.e., the interest rate is reduced by \(15\%\) of its original rate) and a processing fee equal to \(5\%\) of the financed amount. All other terms remain the same. Assuming the consumer accepts the replacement, how much extra money will he have paid in total compared with the original contract? Express your answer in naira.
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About This Question
This is Neco Model Questions Vol1 2017 Commerce Question 41. It is one of the objective questions from the 2017 Neco Model Questions Vol1 Commerce examination.
Difficulty level: Hard .
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