Neco 2018 Commerce Question 21

Practice objective / multiple choice question 21 from the 2018 Neco Commerce examination.

Neco 2018 Commerce Objective / Multiple Choice Medium Difficulty
Question 21 NECO • 2018 • COMMERCE • objective

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?

Answer Options

A. 17920
B. 19150
C. 16500
Correct Answer D. 18610
Correct Answer
D
Correct Option:
18610

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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