Neco 2017 Commerce Question 26
Practice objective / multiple choice question 26 from the 2017 Neco Commerce examination.
A trader wishes to borrow \(500000\) naira for 2 years. Bank A offers a nominal annual interest rate of 12% compounded semi‑annually and charges a processing fee of 2% of the loan amount payable upfront. Bank B offers a nominal annual rate of 10% compounded quarterly, no processing fee, but a monthly service charge of \(2000\) naira. Which bank results in the lower total amount payable by the borrower? State the bank name.
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About This Question
This is Neco 2017 Commerce Question 26. It is one of the objective questions from the 2017 Neco Commerce examination.
Difficulty level: Medium .
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