Neco Model Questions Vol1 2024 Commerce Question 17
Practice objective / multiple choice question 17 from the 2024 Neco Model Questions Vol1 Commerce examination.
A small business needs to raise \(\,\text{₦}5,000,000\). It can obtain a bank loan at 12% per annum, repayable over 5 years with equal annual payments, and it can also issue 10% debentures (interest paid annually). The business wants the total annual cash outflow for financing not to exceed \(\,\text{₦}1,200,000\). What is the maximum amount that can be borrowed as a bank loan (in naira) while meeting this cash‑outflow limit?
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About This Question
This is Neco Model Questions Vol1 2024 Commerce Question 17. It is one of the objective questions from the 2024 Neco Model Questions Vol1 Commerce examination.
Difficulty level: Medium .
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