Neco 2018 Commerce Question 21
Practice objective / multiple choice question 21 from the 2018 Neco Commerce examination.
A customer obtains a loan of ₦500,000 from a bank. The bank deducts a processing fee equal to \\(2\\%\\) of the loan amount before disbursing the funds, and also charges a fixed monthly service fee of ₦2,000. The loan carries a nominal annual interest rate of \\(12\\%\\) compounded monthly and is to be repaid in equal monthly installments over \\(3\\) years. What is the amount of each monthly installment (including the service fee), rounded to the nearest naira?
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About This Question
This is Neco 2018 Commerce Question 21. It is one of the objective questions from the 2018 Neco Commerce examination.
Difficulty level: Medium .
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