A retailer purchases goods worth ₦120,000 from a wholesaler. The wholesaler offers a 10% trade discount followed by a 5% cash discount for payment within 30 days. If the retailer pays within 30 days, how much does the retailer pay?

First, the trade discount of 10% is applied: 10% × ₦120,000 = ₦12,000; price after trade discount = ₦108,000. Then the cash discount of 5% is applied to ₦108,000: 5% × ₦108,000 = ₦5,400; final amount payable = ₦108,000 − ₦5,400 = ₦102,600. Option A (₦102,000) incorrectly adds both percentages (15%) before applying them, and option C (₦108,000) ignores the cash discount.