JAMB - Commerce (2003 - No. 8)

Ojo purchased the following items from Sani at the specified prices on credit:
200 cartons of milk at N1,000 per carton; 50 bags of rice at N3 000 per bag.
Sani allowed 10% trade discount and 5% cash discount if payment is made within the agreed period. Ojo paid within the agreed period.

How much was the trade discount?

N42.500
N27,500
N22,500
20,000

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