Neco Model Questions Vol1 2022 Commerce Question 32
Practice objective / multiple choice question 32 from the 2022 Neco Model Questions Vol1 Commerce examination.
A small business needs N1,200,000 of capital. It can obtain a bank loan at 12 % per annum, repayable in equal annual instalments over 3 years, or issue 10 % debentures payable annually. If it uses a mix of both, the total annual cash outflow (loan instalments plus debenture interest) must not exceed N250,000. Determine the maximum amount that can be borrowed as a bank loan under these conditions, and the amount that must be raised through debentures.
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About This Question
This is Neco Model Questions Vol1 2022 Commerce Question 32. It is one of the objective questions from the 2022 Neco Model Questions Vol1 Commerce examination.
Difficulty level: Medium .
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