Neco Model Questions Vol1 2021 Commerce Question 33
Practice objective / multiple choice question 33 from the 2021 Neco Model Questions Vol1 Commerce examination.
A trader discounts a ₦(150{,}000) bill of exchange for 90 days at a simple discount rate of (10\%\) per annum. In addition, the bank charges a handling fee equal to (2\%\) of the face value. (i) How much does the trader receive after the discount and the fee are deducted? (ii) What is the effective annual discount rate based on the amount actually received? Express the rate as a percentage to two decimal places.
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About This Question
This is Neco Model Questions Vol1 2021 Commerce Question 33. It is one of the objective questions from the 2021 Neco Model Questions Vol1 Commerce examination.
Difficulty level: Medium .
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