Gce Model Questions Vol1 2018 Commerce Question 14
Practice objective / multiple choice question 14 from the 2018 Gce Model Questions Vol1 Commerce examination.
A company receives an invoice for \(\text{₦}250\,000\) payable in 30 days. It can either discount the invoice at a bank that charges a discount rate of 12 % per annum on the face value and a flat processing fee of \(\text{₦}2\,500\), or obtain a short‑term loan from a finance house at 10 % per annum simple interest calculated on the actual 30‑day period. Which option is cheaper for the company and by how much (in naira)?
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About This Question
This is Gce Model Questions Vol1 2018 Commerce Question 14. It is one of the objective questions from the 2018 Gce Model Questions Vol1 Commerce examination.
Difficulty level: Hard .
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