Waec Model Questions Vol1 2025 Commerce Question 11

Practice objective / multiple choice question 11 from the 2025 Waec Model Questions Vol1 Commerce examination.

Waec Model Questions Vol1 2025 Commerce Objective / Multiple Choice Medium Difficulty
Question 11 WAEC_MODEL_QUESTIONS_VOL1 • 2025 • COMMERCE • objective

Bank A offers a loan of ₦500,000 repayable in 3 years with a nominal annual interest rate of 12% compounded semi‑annually and charges an upfront processing fee of 2% of the loan amount. Bank B offers the same loan with an effective annual interest rate of 11% and no processing fee. Which bank provides the lower total cost to the borrower?

Answer Options

Correct Answer A. Bank B
B. Neither bank; consider a third option
C. Bank A
D. Both banks have equal total cost
Correct Answer
A
Correct Option:
Bank B

About This Question

This is Waec Model Questions Vol1 2025 Commerce Question 11. It is one of the objective questions from the 2025 Waec Model Questions Vol1 Commerce examination.

Difficulty level: Medium .

Master the Exam!

You've seen a preview, but there are thousands more questions plus AI tutor to break down complex solutions.

Unlock Full Access Available for Android & Windows
Chat with Support