Gce Model Questions Vol1 2020 Commerce Question 10

Practice objective / multiple choice question 10 from the 2020 Gce Model Questions Vol1 Commerce examination.

Gce Model Questions Vol1 2020 Commerce Objective / Multiple Choice Medium Difficulty
Question 10 GCE_MODEL_QUESTIONS_VOL1 • 2020 • COMMERCE • objective

A customer can borrow \(₦1,000,000\) under two loan offers. Offer A: nominal annual interest rate 12% compounded monthly. Offer B: nominal annual interest rate 11.5% compounded quarterly. Both loans are for 3 years. Which offer results in the lower total interest payable, and what is the total amount payable for each offer (rounded to the nearest naira)?

Answer Options

A. Offer A is cheaper; total payable - Offer A: ₦1,430,900, Offer B: ₦1,405,000
B. Offer B is cheaper; total payable - Offer A: ₦1,420,000, Offer B: ₦1,405,000
Correct Answer C. Offer B is cheaper; total payable - Offer A: ₦1,430,900, Offer B: ₦1,405,000
D. Offer B is cheaper; total payable - Offer A: ₦1,430,900, Offer B: ₦1,415,000
Correct Answer
C
Correct Option:
Offer B is cheaper; total payable - Offer A: ₦1,430,900, Offer B: ₦1,405,000

About This Question

This is Gce Model Questions Vol1 2020 Commerce Question 10. It is one of the objective questions from the 2020 Gce Model Questions Vol1 Commerce examination.

Difficulty level: Medium .

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