Neco Model Questions Vol1 2019 Commerce Question 33

Practice objective / multiple choice question 33 from the 2019 Neco Model Questions Vol1 Commerce examination.

Neco Model Questions Vol1 2019 Commerce Objective / Multiple Choice Hard Difficulty
Question 33 NECO_MODEL_QUESTIONS_VOL1 • 2019 • COMMERCE • objective

A consumer purchases a washing machine with a list price of \(120{,}000\) ₦. The seller offers a 10 % cash discount and an additional 5 % discount if the consumer trades in an old machine valued at \(15{,}000\) ₦. Value‑added tax (VAT) of 7.5 % is applied after all discounts. After a month the consumer discovers a defect and is entitled to a statutory compensation equal to 20 % of the post‑VAT price. The consumer must also pay a service charge of \(2{,}500\) ₦ for the repair. Determine (a) the net amount the consumer finally pays, and (b) whether the consumer makes a profit or loss compared with the original cash price without any discounts or VAT.

Answer Options

A. Final payment = 75,500 ₦; consumer saves 44,500 ₦ (profit)
Correct Answer B. Final payment = 77,836 ₦; consumer saves 42,164 ₦ (profit)
C. Final payment = 80,000 ₦; consumer saves 39,000 ₦ (profit)
D. Final payment = 77,836 ₦; consumer saves 40,000 ₦ (profit)
Correct Answer
B
Correct Option:
Final payment = 77,836 ₦; consumer saves 42,164 ₦ (profit)

About This Question

This is Neco Model Questions Vol1 2019 Commerce Question 33. It is one of the objective questions from the 2019 Neco Model Questions Vol1 Commerce examination.

Difficulty level: Hard .

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