Neco 2018 Commerce Question 33
Practice objective / multiple choice question 33 from the 2018 Neco Commerce examination.
Two banks offer a ₦1{,}200{,}000 loan repayable over 3 years with equal annual payments. Bank A charges 10% annual interest, a 2% upfront processing fee, and a yearly service charge of ₦15{,}000. Bank B charges 9% annual interest, a 1.5% upfront insurance premium, and no service charge. Assuming the fees are not financed, which loan results in the lower total amount paid by the borrower and by how much?
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About This Question
This is Neco 2018 Commerce Question 33. It is one of the objective questions from the 2018 Neco Commerce examination.
Difficulty level: Medium .
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