Neco Model Questions Vol1 2024 Commerce Question 7

A consumer buys a washing machine for ₦120,000. The seller provides a 2‑year warranty that covers only parts. After 18 months the machine fails because of a motor defect, which is covered by the warranty. The consumer takes it to a repair shop that charges ₦15,000 for parts and ₦5,000 for labour. Under the Consumer Protection Act, if the cost of repair exceeds \(30\%\) of the original purchase price, the consumer may reject the repair and demand a replacement or a refund. The consumer also purchased an extended service plan for ₦8,000, which guarantees free repairs for the first 2 years but expressly excludes motor defects. The repair does not restore the machine to working condition. The consumer therefore decides to claim a refund under the Act, which requires the seller to refund the purchase price minus a reasonable depreciation of \(10\%\) per year of use. Compute the amount the consumer is entitled to receive as a refund. Give your answer in Naira, rounded to the nearest naira.