Neco Model Questions Vol1 2023 Commerce Question 50
Practice objective / multiple choice question 50 from the 2023 Neco Model Questions Vol1 Commerce examination.
A Nigerian importer purchases goods priced at €\(250{,}000\). The exchange rate at the time of contract is \(\₦560\) per euro. The importer pays a bank commission of \(2\%\) on the foreign‑currency amount and an import duty of \(5\%\) on the value in naira after conversion (excluding commission). After payment, the naira depreciates to \(\₦580\) per euro. If the importer had waited to pay until after the depreciation, calculate the difference in total naira outlay between paying now and paying after depreciation, assuming the same commissions and duties apply. State whether the importer saves or loses and by how much.
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About This Question
This is Neco Model Questions Vol1 2023 Commerce Question 50. It is one of the objective questions from the 2023 Neco Model Questions Vol1 Commerce examination.
Difficulty level: Medium .
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