Eze buys a 90-day bill of exchange with a face value of ₦500,000 at a discount of 8% per annum. How much does Eze pay for the bill?

The discount for 90 days at 8% per annum is calculated as: ₦500,000 × 8/100 × 90/360 = ₦10,000. Eze therefore pays ₦500,000 − ₦10,000 = ₦490,000. Option A incorrectly applies the full annual rate, option C uses 365-day convention giving ₦500,000 × 0.08 × 90/365 ≈ ₦9,863, and option D is a common arithmetic error.