Neco 2017 Commerce Question 45
Practice objective / multiple choice question 45 from the 2017 Neco Commerce examination.
A borrower is comparing two loan offers for a principal of \(\text{₦}500{,}000\) over 3 years.\n\nOption A: Simple interest at 12% per annum plus a processing fee equal to 2% of the principal.\nOption B: Compound interest at 10% per annum (compounded annually) plus a flat processing fee of \(\text{₦}15{,}000\).\n\nWhich option results in the lower total amount to be repaid, and what is that total amount (in Naira)?
Answer Options
About This Question
This is Neco 2017 Commerce Question 45. It is one of the objective questions from the 2017 Neco Commerce examination.
Difficulty level: Medium .
Master the Exam!
You've seen a preview, but there are thousands more questions plus AI tutor to break down complex solutions.