Neco Model Questions Vol1 2020 Commerce Question 30
Practice objective / multiple choice question 30 from the 2020 Neco Model Questions Vol1 Commerce examination.
Bank A offers a loan of \(\text{₦}500,000\) with a nominal annual interest rate of \(12\%\) compounded quarterly. Bank B offers a loan of the same amount with a nominal annual rate of \(11.5\%\) compounded monthly. Which loan has the lower effective annual interest rate, and what is the difference between the two effective rates (in percentage points, to two decimal places)?
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About This Question
This is Neco Model Questions Vol1 2020 Commerce Question 30. It is one of the objective questions from the 2020 Neco Model Questions Vol1 Commerce examination.
Difficulty level: Medium .
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