Gce Model Questions Vol1 2021 Commerce Question 47
Practice objective / multiple choice question 47 from the 2021 Gce Model Questions Vol1 Commerce examination.
A business takes a loan of ₦500,000 from a bank. The loan carries a nominal annual interest rate of \(12\%\) payable monthly and a processing fee of \(2\%\) of the loan amount, deducted at the start. The loan is to be repaid in equal monthly instalments over 3 years. Calculate the effective annual interest rate (APR) that the borrower actually pays, taking the fee into account. Express your answer as a percentage rounded to one decimal place.
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About This Question
This is Gce Model Questions Vol1 2021 Commerce Question 47. It is one of the objective questions from the 2021 Gce Model Questions Vol1 Commerce examination.
Difficulty level: Medium .
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