Neco Model Questions Vol1 2019 Commerce Question 47
Practice objective / multiple choice question 47 from the 2019 Neco Model Questions Vol1 Commerce examination.
A borrower applies for a loan of \(\text{₦}500,000\). The bank deducts a processing fee of 1 % from the amount disbursed. The loan carries a simple interest rate of 15 % per annum for 12 months, but the borrower intends to repay after 8 months and receives a 10 % discount on the interest for early repayment. What is the effective annual interest rate that the borrower actually pays on the funds he receives?
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About This Question
This is Neco Model Questions Vol1 2019 Commerce Question 47. It is one of the objective questions from the 2019 Neco Model Questions Vol1 Commerce examination.
Difficulty level: Medium .
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