Neco Model Questions Vol1 2020 Commerce Question 7
Practice objective / multiple choice question 7 from the 2020 Neco Model Questions Vol1 Commerce examination.
A washing machine is sold for ₦80,000 with a 2‑year warranty. After 18 months the machine fails. The consumer may either receive a brand‑new replacement costing ₦85,000 or a cash compensation equal to the current market value of the defective machine. The market value depreciates linearly at \(15\%\) per year from the original price. In addition, the law adds a compensation of \(10\%\) of the original price for inconvenience. If the market value is less than \(70\%\) of the original price, the consumer is entitled to the full replacement cost instead. What amount, in naira, will the consumer receive as cash compensation?
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About This Question
This is Neco Model Questions Vol1 2020 Commerce Question 7. It is one of the objective questions from the 2020 Neco Model Questions Vol1 Commerce examination.
Difficulty level: Hard .
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