Neco Model Questions Vol1 2020 Commerce Question 1
Practice objective / multiple choice question 1 from the 2020 Neco Model Questions Vol1 Commerce examination.
A retailer purchases inventory costing ₦200,000 on credit. The supplier offers a discount of \(2\%\) if payment is made within 20 days; otherwise the full price is payable 60 days later. The retailer can also obtain a bank loan at \(12\%\) per annum simple interest, repayable in 60 days. Which option results in a lower cost of financing the purchase? State the cheaper option.
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About This Question
This is Neco Model Questions Vol1 2020 Commerce Question 1. It is one of the objective questions from the 2020 Neco Model Questions Vol1 Commerce examination.
Difficulty level: Medium .
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