Neco Model Questions Vol1 2023 Commerce Question 42
Practice objective / multiple choice question 42 from the 2023 Neco Model Questions Vol1 Commerce examination.
A borrower needs ₦200,000 and is considering two loan offers: Option A: nominal annual interest rate 12 % compounded monthly, with a processing fee of ₦5,000. Option B: flat simple interest rate 10 % per annum, no fee, to be repaid in equal monthly installments over 2 years. Which option results in a lower total amount paid (including all interest and fees)?
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About This Question
This is Neco Model Questions Vol1 2023 Commerce Question 42. It is one of the objective questions from the 2023 Neco Model Questions Vol1 Commerce examination.
Difficulty level: Medium .
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