Neco Model Questions Vol1 2022 Commerce Question 2

Practice objective / multiple choice question 2 from the 2022 Neco Model Questions Vol1 Commerce examination.

Neco Model Questions Vol1 2022 Commerce Objective / Multiple Choice Hard Difficulty
Question 2 NECO_MODEL_QUESTIONS_VOL1 • 2022 • COMMERCE • objective

A supplier issues an invoice for \(N150{,}000\) with terms 2/10, n/30 (2% discount if paid within 10 days, otherwise the net amount is due in 30 days). The buyer pays the invoice on day 20. (a) State the amount the buyer actually pays. (b) Calculate the effective annual interest rate that the buyer incurs by forgoing the discount.

Answer Options

A. a) N147,000; b) Approximately 68.2% per annum
B. a) N150,000; b) Approximately 80.0% per annum
C. a) N148,500; b) Approximately 70.1% per annum
Correct Answer D. a) N150,000; b) Approximately 74.5% per annum
Correct Answer
D
Correct Option:
a) N150,000; b) Approximately 74.5% per annum

About This Question

This is Neco Model Questions Vol1 2022 Commerce Question 2. It is one of the objective questions from the 2022 Neco Model Questions Vol1 Commerce examination.

Difficulty level: Hard .

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