Neco Model Questions Vol1 2021 Commerce Question 19

Practice objective / multiple choice question 19 from the 2021 Neco Model Questions Vol1 Commerce examination.

Neco Model Questions Vol1 2021 Commerce Objective / Multiple Choice Medium Difficulty
Question 19 NECO_MODEL_QUESTIONS_VOL1 • 2021 • COMMERCE • objective

Bank A quotes a nominal annual interest rate of 15 % compounded monthly on a loan. Bank B offers an effective annual rate of 16 %. Which bank provides the cheaper rate? Compute the effective annual rate for Bank A and compare.

Answer Options

A. Cannot determine without additional information
Correct Answer B. Bank B
C. Bank A
D. Both banks have the same effective rate
Correct Answer
B
Correct Option:
Bank B

About This Question

This is Neco Model Questions Vol1 2021 Commerce Question 19. It is one of the objective questions from the 2021 Neco Model Questions Vol1 Commerce examination.

Difficulty level: Medium .

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