Neco Model Questions Vol1 2024 Commerce Question 2
Practice objective / multiple choice question 2 from the 2024 Neco Model Questions Vol1 Commerce examination.
A merchant obtains a loan with a face value of \(\text{₦}500,000\). The loan is discounted at \(5\%\), a processing fee of \(2\%\) of the discounted amount is charged, and simple interest of \(12\%\) per annum is payable at the end of six months. If the merchant repays the loan after six months, what is the effective annual interest rate (to two decimal places) on the amount actually received?
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About This Question
This is Neco Model Questions Vol1 2024 Commerce Question 2. It is one of the objective questions from the 2024 Neco Model Questions Vol1 Commerce examination.
Difficulty level: Medium .
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