Chibuike bought 36 notebooks at N10 each from John and was given a trade discount of 5%. In addition, he was offered 1% cash discount which he took advantage of. How much did Chibuike pay?

  • A N338.58
  • B N342.00
  • C N345.42
  • D N360,00
jamb 1999accounting

The correct answer is A. N338.58

Let’s calculate the total amount Chibuike paid:

  1. First, calculate the total cost of the notebooks before any discounts: 36 notebooks * N10/notebook = N360.
  2. Next, apply the trade discount of 5%: N360 * 5/100 = N18. So, the price after the trade discount is N360 - N18 = N342.
  3. Finally, apply the 1% cash discount: N342 * 1/100 = N3.42. So, the final amount Chibuike paid is N342 - N3.42 = N338.58.

So, the correct answer is N338.58.

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