Neco Model Questions Vol1 2023 Agricultural Science Question 32
Practice objective / multiple choice question 32 from the 2023 Neco Model Questions Vol1 Agricultural Science examination.
A farmer intends to purchase a tractor costing ₦(2{,}500{,}000). He will finance 60 % of the cost with a bank loan at 12 % simple interest per annum for 5 years, and pay the remaining 40 % cash upfront. The tractor will be used for 5 years and then sold for a salvage value of ₦(300{,}000). Depreciation is calculated on a straight‑line basis over the 5‑year life. Assuming the loan is repaid in equal annual instalments, compute the minimum annual revenue the farmer must earn to cover the tractor's total annual cost, given that the operating cost of the tractor is ₦(150{,}000) per year.
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About This Question
This is Neco Model Questions Vol1 2023 Agricultural Science Question 32. It is one of the objective questions from the 2023 Neco Model Questions Vol1 Agricultural Science examination.
Difficulty level: Hard .
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