Neco Model Questions Vol1 2019 Commerce Question 40
Practice objective / multiple choice question 40 from the 2019 Neco Model Questions Vol1 Commerce examination.
A small business needs a short‑term loan of ₦800,000 for 9 months. It has two options:\n\nOption A: a bank offers a simple‑interest loan at \(9\%\) per annum, interest payable at the end of the term.\n\nOption B: a finance company offers a discount loan with an effective annual rate of \(12\%\), also for 9 months.\n\nWhich option results in a lower total cash outflow at the end of the 9 months, and what is that total repayment amount?
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About This Question
This is Neco Model Questions Vol1 2019 Commerce Question 40. It is one of the objective questions from the 2019 Neco Model Questions Vol1 Commerce examination.
Difficulty level: Medium .
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