Neco 2023 Commerce Question 22
Practice objective / multiple choice question 22 from the 2023 Neco Commerce examination.
A loan of \(L = 1{,}200{,}000\) naira is to be repaid over 3 years with equal monthly installments. For the first 18 months the bank charges a nominal annual rate of 12% convertible monthly, then revises the rate to 9% convertible monthly for the remaining months. The borrower also makes an extra lump‑sum payment of \(100{,}000\) naira at the end of month 12. Find the fixed monthly installment amount (the same for all 36 months) that will exactly amortise the loan under these conditions.
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About This Question
This is Neco 2023 Commerce Question 22. It is one of the objective questions from the 2023 Neco Commerce examination.
Difficulty level: Medium .
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