Neco Model Questions Vol1 2024 Government Question 5

Practice objective / multiple choice question 5 from the 2024 Neco Model Questions Vol1 Government examination.

Neco Model Questions Vol1 2024 Government Objective / Multiple Choice Hard Difficulty
Question 5 NECO_MODEL_QUESTIONS_VOL1 • 2024 • GOVERNMENT • objective

A local government's own‑source revenue (OSR) consists of property rates and market taxes. In year 1 the collections are \(12\) million and \(8\) million respectively. The state government pays a conditional grant each year equal to 20 % of the total OSR of the preceding year. Property rates are expected to grow by 5 % per year and market taxes by 3 % per year. Calculate the OSR and the total revenue (OSR + grant) for year 3, giving answers in million naira to two decimal places.

Answer Options

A. OSR₃ ≈ 22.05 million; total revenue ≈ 26.22 million
B. OSR₃ ≈ 20.84 million; total revenue ≈ 25.01 million
Correct Answer C. OSR₃ ≈ 21.72 million; total revenue ≈ 25.89 million
D. OSR₃ ≈ 21.72 million; total revenue ≈ 26.06 million
Correct Answer
C
Correct Option:
OSR₃ ≈ 21.72 million; total revenue ≈ 25.89 million

About This Question

This is Neco Model Questions Vol1 2024 Government Question 5. It is one of the objective questions from the 2024 Neco Model Questions Vol1 Government examination.

Difficulty level: Hard .

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