Gce Model Questions Vol1 2020 Commerce Question 24

Practice objective / multiple choice question 24 from the 2020 Gce Model Questions Vol1 Commerce examination.

Gce Model Questions Vol1 2020 Commerce Objective / Multiple Choice Medium Difficulty
Question 24 GCE_MODEL_QUESTIONS_VOL1 • 2020 • COMMERCE • objective

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?

Answer Options

Correct Answer A. 14.36
B. 12.50
C. 15.20
D. 13.85
Correct Answer
A
Correct Option:
14.36

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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