Neco Model Questions Vol1 2023 Commerce Question 1

Practice objective / multiple choice question 1 from the 2023 Neco Model Questions Vol1 Commerce examination.

Neco Model Questions Vol1 2023 Commerce Objective / Multiple Choice Hard Difficulty
Question 1 NECO_MODEL_QUESTIONS_VOL1 • 2023 • COMMERCE • objective

A consumer purchases a television with a marked price of ₦120,000. The seller first gives a \(10\%\) discount, then a further \(5\%\) discount on the reduced price, and finally adds VAT of \(7.5\%\) on the discounted price. Because the TV was delivered after 30 days, the Consumer Protection Act requires a rebate of \(2\%\) on the final amount payable. (a) Calculate the amount the consumer finally pays. (b) How much more or less would the consumer have paid if the seller had applied a single \(15\%\) discount before adding VAT (no rebate)?

Answer Options

A. Final amount payable: ₦107,500.00; the consumer pays ₦2,200.00 less than with a single 15% discount before VAT.
Correct Answer B. Final amount payable: ₦108,089.10; the consumer pays ₦1,560.90 less than with a single 15% discount before VAT.
C. Final amount payable: ₦108,500.00; the consumer pays ₦1,000.00 more than with a single 15% discount before VAT.
D. Final amount payable: ₦108,089.10; the consumer pays ₦1,560.90 more than with a single 15% discount before VAT.
Correct Answer
B
Correct Option:
Final amount payable: ₦108,089.10; the consumer pays ₦1,560.90 less than with a single 15% discount before VAT.

About This Question

This is Neco Model Questions Vol1 2023 Commerce Question 1. It is one of the objective questions from the 2023 Neco Model Questions Vol1 Commerce examination.

Difficulty level: Hard .

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