Neco Model Questions Vol1 2019 Commerce Question 37

A consumer buys a television with a marked price of ₦150,000. The seller gives a \(10\%\) discount, then VAT of \(7.5\%\) is added on the discounted price. The consumer pays a \(30\%\) deposit of the total amount (after discount and VAT) and the balance in 3 months. The seller delays delivery by 2 months; under the Consumer Protection Act the consumer is entitled to a penalty of \(2\%\) of the total purchase price (after discount and VAT) for each month of delay, up to \(6\%\). The consumer can claim a warranty service worth ₦12,000 only if the total amount actually paid (including penalty) does not exceed ₦140,000. Determine whether the consumer is eligible for the warranty and compute the total amount finally paid (including penalty).