Neco 2024 Commerce Question 39
Practice objective / multiple choice question 39 from the 2024 Neco Commerce examination.
A borrower obtains a loan with a face amount of \(\text{₦}500,000\) for six months. The loan is quoted at a discount rate of 12% per annum and a processing fee of 2% of the face amount is payable upfront. The discount is calculated on the face amount for the actual loan period. What is the effective annual interest rate (EAR) that the borrower actually pays, expressed as a percentage to two decimal places?
Answer Options
About This Question
This is Neco 2024 Commerce Question 39. It is one of the objective questions from the 2024 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.