Neco 2023 Islamic Religious Studies Question 12
Practice objective / multiple choice question 12 from the 2023 Neco Islamic Religious Studies examination.
A borrower takes a loan of \\(\\text{₦}50,000\\) with an agreement to repay the principal plus a total simple interest of 20% of the principal, payable in equal annual installments over 2 years. The borrower proposes instead to repay the loan with compound interest at 10% per annum, compounded annually. Calculate the total amount the borrower would pay under the compound scheme and state whether this amount exceeds the total repayment allowed by the original simple‑interest agreement.
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About This Question
This is Neco 2023 Islamic Religious Studies Question 12. It is one of the objective questions from the 2023 Neco Islamic Religious Studies examination.
Difficulty level: Medium .
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