Neco 2018 Commerce Question 3
Practice objective / multiple choice question 3 from the 2018 Neco Commerce examination.
A borrower obtains a loan of ₦500,000. The bank applies a discount of \(2\%\) on the loan amount and also deducts a processing fee of ₦5,000 upfront. The loan is to be repaid in equal monthly installments over 12 months, with interest charged on the reducing balance at a nominal annual rate \(i\) (compounded monthly). At the end of the year the borrower has paid a total of ₦560,000. Calculate the nominal annual interest rate \(i\) (to the nearest 0.1\%).
Answer Options
About This Question
This is Neco 2018 Commerce Question 3. It is one of the objective questions from the 2018 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.