Neco 2024 Economics Question 45
Practice objective / multiple choice question 45 from the 2024 Neco Economics examination.
The Consumer Price Index (CPI) was 120 in 2022 and rose to 126 in 2023. A bank offers a nominal interest rate of 12 % per annum on a ₦100 000 loan taken in 2023. Using the Fisher approximation, calculate the real interest rate and then state the purchasing power of the loan amount after one year in real terms (rounded to the nearest naira).
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About This Question
This is Neco 2024 Economics Question 45. It is one of the objective questions from the 2024 Neco Economics examination.
Difficulty level: Medium .
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