Neco Model Questions Vol1 2017 Commerce Question 42
Practice objective / multiple choice question 42 from the 2017 Neco Model Questions Vol1 Commerce examination.
A borrower takes a loan of \(\text{₦}500,000\) from a bank at a nominal annual interest rate of \(12\%\) convertible monthly. He intends to repay the loan with a single payment after \(18\) months. The bank charges a pre‑payment penalty equal to \(2\%\) of the outstanding principal at the time of repayment. Calculate the total amount the borrower must pay at the end of \(18\) months, including interest and the penalty. Give your answer in naira, rounded to the nearest naira.
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About This Question
This is Neco Model Questions Vol1 2017 Commerce Question 42. It is one of the objective questions from the 2017 Neco Model Questions Vol1 Commerce examination.
Difficulty level: Medium .
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