UI Post-UTME Mathematics 2018 (Model questions) Question 22

Question 22

Commercial Arithmetic

A trader bought an article in Sierra Leone at Le 360,000. He paid 25% of the cost price as import duty on entering Nigeria. If the rate of exchange is ₦1.00 = Le 16.00, how much, in naira, did he pay as import duty?

A.₦0,265
B.₦5,625
C.₦5,562
D.₦5,000

Show the answer and explanation

Answer: B (₦5,625)

Explanation

Duty = 25% of Le 360,000 = Le 90,000 = 90,000 ÷ 16 = ₦5,625.