Gce Model Questions Vol1 2018 Commerce Question 36
Practice objective / multiple choice question 36 from the 2018 Gce Model Questions Vol1 Commerce examination.
An entrepreneur takes a loan of \(\text{₦}500{,}000\) from a bank at a nominal annual interest rate of \(12\%\) convertible quarterly. The loan is to be repaid in equal quarterly instalments over 2 years. After the first instalment the bank offers to refinance the outstanding balance at a new nominal annual rate of \(10\%\) convertible monthly for the remaining term. Assuming the borrower keeps the same total number of instalments (i.e., the remaining 7 quarters are replaced by monthly instalments), calculate the amount of each new monthly instalment (rounded to the nearest ten naira).
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About This Question
This is Gce Model Questions Vol1 2018 Commerce Question 36. It is one of the objective questions from the 2018 Gce Model Questions Vol1 Commerce examination.
Difficulty level: Medium .
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