MCQ Questions

Question No. 1

Mr and Mrs Nwandu have decided that they need to start saving money to go on holiday in December. They draw up a budget and work out how much money they are able to save for the holiday. They decide to save all the money left over after their expenses for their holiday. Monthly income: Salary after deductions ₦415 000; Rent income ₦64 000. Monthly expenditure: Pension ₦18 300; Medical aid ₦82 000; Insurance ₦34 000; Water and refuse ₦5 000; Electricity ₦17 000; Car repayment ₦45 000; School fees

Answer :

a) Calculate the amount of money that the Nwandu family can save every month.

b) Calculate the total expenditure of the Nwandu household.

c) If Mr and Mrs Nwandu save for six months, calculate the total amount of money saved for their holiday.

Question No. 2

Bako earns ₦30 000 per week, plus 38 % commission. He sells ₦1 500 in one week. What is his gross weekly earning?

Answer :

Question No. 3

Efe draws up the following budget for maintaining her car over 12 months: Car licence ₦3 740; Tyres (4 needed) ₦11 800 per tyre; Service ₦7 260; Insurance ₦3 880 per month; Wheel alignment ₦2 910; Grease and oil change ₦5 335.

Answer :

a) How much will she pay annually for insurance?

b) Calculate the total cost to replace four tyres.

c) What is the total amount for car maintenance for 12 months?

d) Calculate the average cost per kilometre, if the car was driven 10 265 km during the 12 months.

Question No. 4

The table below shows a summary of the water account for Mr DG Bakare for a period of eight months. The first 5.6 kilolitres (kl) used for each month is free. (Remember 1 000 l = 1 kl.)

Answer :

a) How many litres of water were consumed in September?

b) What is the highest amount that Mr Bakare paid for water?

c) In which month did Mr Bakare pay the least for water used?

d) Now complete the outstanding values for the table above. Write down the question numbers (i)–(iv) and show all calculations next to it.

e) The water usage for August was 22 kl and for September it was 28 kl. Calculate the percentage increase for the total number of kilolitres (kl) of water used for August and September.

f) Calculate the total amount paid by Mr Bakare for water from August to January

Question No. 5

Below is a mobile phone account and tariff schedule for Ekong. a) Is a cell phone account a variable or fixed expense? Give a reason for your answer. b) Based on the information above, calculate what the cost of Ekong’s phone bill will be.

Answer :

a) Is a cell phone account a variable or fixed expense? Give a reason for your answer.

b) Based on the information above, calculate what the cost of Ekong’s phone bill will be.

Question No. 6

Calculate the simple interest (SI) on N65 000 at 11.5% p.a. for 4½ years.

Answer :

Question No. 7

Yabani lent his sister ₦10 000 at 12% p.a. simple interest. She repaid him after 3 years. How much did Yabeni receive?

Answer :

Question No. 8

An amount of ₦60 000 is invested in a savings account that pays simple interest at a rate of 7.5% p.a. Calculate the balance accumulated at the end of 2 years.

Answer :

Question No. 9

Calculate the accumulated amount in the following situations.

Answer :

a) A loan of ₦80 000 at a rate of 8% for 1 year

b) An investment of ₦550 000 at a rate of 12.5% p.a. for 6 years

Question No. 10

Calculate the value of an investment of ₦16 000 at 9% simple interest p.a. for 36 months.

Answer :

Question No. 11

Aderibigbe invested ₦72 500. After 8 years his investment is worth ₦87 700. Calculate the interest rate he earned.

Answer :

Question No. 12

Akanmu invested ₦65 000 at 8¾% simple interest for a certain period. If he has ₦81 477.50 at the end of the investment, how long did he invest his money for?

Answer :

Question No. 13

A woman invests a certain amount of money at 5.5% p.a. for 9 years. At the end of the period, she has earned interest of ₦12 375. What was the amount she originally invested?

Answer :

Question No. 14

How long will it take for an investment of ₦6 000 to grow to ₦8 160 if it is invested at a simple interest rate of 9% p.a.?

Answer :

Question No. 15

Adama borrowed ₦2 500 from Jabe for 2 years. Jabe requires that Adama pay him ₦3 200 after 2 years. What is the interest rate?

Answer :

Question No. 16

Ozioma wants to buy a hi‑fi system from Advanced Sound Systems for N75 000. He considers buying the system on hire purchase. What would Ozioma’s monthly repayments be, if she were to buy the hi‑fi system on the hire purchase terms on the right?

Answer :

Question No. 17

Utibe decides to buy a television. He cannot afford the cash price of N37 000, so he purchases it on a hire purchase agreement with the following terms over 2 years: • A compulsory 15 % deposit is payable. • Interest is charged at 16 % p.a.

Answer :

a) How much interest does Utibe pay?

b) How much does he pay in total?

c) How much will his total monthly repayments be?

Question No. 18

Mrs Eze wants to purchase a new dining room table for N220 000 from Help Stores. She enters into a hire purchase agreement with Help Stores, with the following terms: • must pay a 12 % deposit • will be charged 11 % p.a. simple interest on the balance • must pay the outstanding balance over 3 years, in equal monthly instalments.

Answer :

a) What deposit will Mrs Eze pay?

b) After paying the deposit, what amount is still outstanding?

c) How much interest will she pay in the three years?

d) What will her monthly instalments be?

e) How much did she end up paying for the table?

Question No. 19

Use these previous and current electricity meter readings in a given period to calculate the number of energy units used.

Answer :

a) previous reading = 8570, current reading = 9745

b) previous reading = 5459, current reading = 7893

c) previous reading = 8009, current reading = 78923

Question No. 20

A business uses 680 units of electricity in one month. Electricity is charged at ₦14.40 per unit, and the monthly demand charge is ₦750 with VAT at 5%. Calculate the electricity account for the business for the month.

Answer :

Question No. 21

Electricity is charged at ₦14.40 per unit. VAT at 5% is applied to the cost of electricity and the demand charge is ₦1 250. Use the above information to find the cost of the following usages:

Answer :

a) 620 units

b) 1 020 units

c) 780 units

d) 855 units

Question No. 22

In the first quarter, the reading on Mr Adigun’s meter changed from 40 789 to 41 769. The cost of electricity is ₦14.40 per unit. The demand charge is ₦750 and VAT is 5%. Calculate:

Answer :

a) The number of units used.

b) The cost of electricity.

c) The total electricity bill including VAT.

Question No. 23

A householder receives an electricity bill of ₦1 300.00 from IKEDC including VAT. The demand charge is ₦750. The cost per unit is ₦14.40.

Answer :

a) Calculate the number of units used.

b) If the previous reading on the meter was 68 008, work out the current reading.

Question No. 24

For each of the listed items, find the discount amount and selling price.

Answer :

Question No. 25

Nagodeallah is given a 5% discount on a shirt that costs N1 900. How much discount does Nagodeallah receive?

Answer :

Question No. 26

How much will you pay for a pair of jeans, if they cost N3 700 and you are offered a 15% discount?

Answer :

Question No. 27

A shop advertises a 33% discount on all goods in the shop. How much will you pay for a pair of pants that were on sale for N2 935?

Answer :

Question No. 28

A supermarket advertises that they are selling bottles of cooking oil that cost N223 at a discounted price of N215. Calculate the percentage discount (to one decimal place).

Answer :

Question No. 29

A car salesman earns commission of 2K in the naira. Calculate his commission, if he sells cars worth ₦1 200 000 in one week.

Answer :

a) A car salesman earns commission of 2K in the naira. Calculate his commission, if he sells cars worth N1 200 000 in one week.

b) An agent earns commission of 10% for each plot sold. If he sold four plots of land in one month, how much will he earn as commission?

c) For every ticket issued at the train station, an agent gets a commission of ₦150 for 5 tickets sold. How much will she get for selling 625 tickets?

d) A bank charges 2½% commission for issuing a bank draft. Calculate the value of the bank draft, if a customer has to pay ₦365 250 to get it from the bank.

e) A bookseller gets a 7% commission on his sales. What is the total commission for selling 30 Mathematics textbooks at ₦750 each, 14 Science textbooks at ₦630 each, and 45 Mathematical sets at ₦150 each?

Question No. 30

An agent earns commission of 10% for each plot sold. If he sold four plots of land in one month, how much will he earn as commission?

Answer :

Question No. 31

For every ticket issued at the train station, an agent gets a commission of ₦150 for 5 tickets sold. How much will she get for selling 625 tickets?

Answer :

Question No. 32

A bank charges 2½% commission for issuing a bank draft. Calculate the value of the bank draft, if a customer has to pay ₦365 250 to get it from the bank.

Answer :

Question No. 33

A bookseller gets a 7% commission on his sales. What is the total commission for selling 30 Mathematics textbooks at ₦750 each, 14 Science textbooks at ₦630 each, and 45 Mathematical sets at ₦150 each?

Answer :

Question No. 34

Toben bought a book for ₦10 000 and sold it to Bolu for ₦9 000.

Answer :

a) What amount did he lose?

b) What was his percentage loss?

Question No. 35

Make a copy of this table and complete it by calculating the profit or loss on each item as a percentage of the cost price.

Answer :

Question No. 36

To attract more passengers, a travel agency decides to reduce transport fares from ₦4 000 to ₦2 500 from Jibade to Biyi. What is the percentage loss this travel agency incurred?

Answer :

Question No. 37

The price of kerosene increased by 20%. If the initial cost was ₦200 per can, what was the new price?

Answer :

Question No. 38

A businessman is in financial difficulty and decides to sell his car that cost him ₦2 000 000 for ₦1 750 000. What is the percentage decrease in the price of his car?

Answer :

Question No. 39

In each of the cases below, find (a) the profit or loss and (b) the selling price for an item with each of these cost prices.

Answer :

a) ₦4 000; profit 25%

b) ₦900; profit 15%

c) ₦375; loss 4%

d) ₦7 500 000; loss 10%

Question No. 40

In each of the following cases, find (a) the actual profit or loss and (b) the percentage profit or loss.

Answer :

a) Cost price ₦800; Selling price ₦3 250

b) ₦420; ₦350

c) ₦7 200 000; ₦6 480 000

d) ₦96 000; ₦132 000

Question No. 41

A woman buys a pair of shoes for ₦40 000. She sells it at ₦33 000. What is her percentage loss?

Answer :

Question No. 42

A carpenter bought wood for ₦18 000. He bought other material for ₦6 000 and used it to make a bed, which she sold for ₦30 000. What was his percentage profit?

Answer :

Question No. 43

A laptop is sold for ₦100 000, which represents a loss of 13%. What was the cost price?

Answer :

Question No. 44

A camera is sold for ₦51 000. The profit mark up on the camera is 70%. Calculate the cost price of the camera.

Answer :

Question No. 45

Complete the table.

Answer :

Question No. 46

A person with five children earns ₦72 640 per month.

Answer :

a) Calculate the tax allowances

b) Calculate the taxable income

c) Calculate the amount of tax paid

d) Calculate the income after tax is paid

Question No. 47

A man has three children. His monthly income is ₦56 250, and he claims ₦2 500 for a dependent relative.

Answer :

a) Calculate his allowance

b) Calculate his taxable income

c) Calculate the amount of tax he pays

Question No. 48

A husband and wife are both teachers. They each get a monthly salary of ₦84 000. They have four children, and the husband claims ₦2 000 for a dependent relative. Assuming the wife claims for the children, calculate:

Answer :

a) the husband’s tax payable

b) the wife’s tax payable

Question No. 49

Calculate the selling price of the following items at 5% VAT.

Answer :

a) A radio that costs ₦4 000

b) Standing fan that costs ₦13 000

c) A car that costs ₦550 000

Question No. 50

Adeyanju bought a photocopier for ₦16 000 excluding VAT. If the rate of VAT is 8%, calculate the amount he paid for the photocopier.

Answer :

Question No. 51

A pair of sneakers costs ₦3 500 including VAT at 7%. Calculate the cost of the sneakers excluding VAT.

Answer :

Question No. 52

A new car costs ₦750 000, including VAT at 8%.

Answer :

a) Calculate the cost of the car excluding VAT.

b) Find the VAT amount to the nearest Naira.

Chapter

Enter Your Book Codewwww

Enter Your Book Code

Insert 6 Digit Book Code

Enter the code sent to