Gce Model Questions Vol1 2020 Commerce Question 24
Practice objective / multiple choice question 24 from the 2020 Gce Model Questions Vol1 Commerce examination.
A customer deposits ₦250,000 in a bank account that offers a nominal interest rate of \(r\)% per annum, compounded quarterly. The bank deducts a maintenance fee of ₦1,500 at the end of each quarter. After 2 years the balance in the account is observed to be ₦315,000. What is the effective annual interest rate (to two decimal places) that the customer actually earned, ignoring the fees?
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About This Question
This is Gce Model Questions Vol1 2020 Commerce Question 24. It is one of the objective questions from the 2020 Gce Model Questions Vol1 Commerce examination.
Difficulty level: Medium .
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