Gce Model Questions Vol1 2023 Commerce Question 50

Practice objective / multiple choice question 50 from the 2023 Gce Model Questions Vol1 Commerce examination.

Gce Model Questions Vol1 2023 Commerce Objective / Multiple Choice Medium Difficulty
Question 50 GCE_MODEL_QUESTIONS_VOL1 • 2023 • COMMERCE • objective

A bank offers a loan of ₦2,000,000 at 12 % per annum compounded monthly. The borrower will make equal monthly repayments for the first 24 months, after which the interest rate falls to 9 % per annum (still compounded monthly) and the monthly repayment is adjusted so that the loan is fully amortised over the original 5‑year term. Calculate the monthly repayment for the first 24 months and the new monthly repayment for the remaining 36 months (rounded to the nearest Naira).

Answer Options

A. First payment = ₦45,200; Remaining payment = ₦41,800
Correct Answer B. First payment = ₦44,543; Remaining payment = ₦42,544
C. First payment = ₦44,100; Remaining payment = ₦43,500
D. First payment = ₦43,900; Remaining payment = ₦42,900
Correct Answer
B
Correct Option:
First payment = ₦44,543; Remaining payment = ₦42,544

About This Question

This is Gce Model Questions Vol1 2023 Commerce Question 50. It is one of the objective questions from the 2023 Gce Model Questions Vol1 Commerce examination.

Difficulty level: Medium .

View More Gce Model Questions Vol1 2023 Commerce Questions More Gce Model Questions Vol1 Practice Questions Back to Questions

Master the Exam!

You've seen a preview, but there are thousands more questions plus AI tutor to break down complex solutions.

Unlock Full Access Available for Android & Windows
Chat with Support