Neco Model Questions Vol1 2025 Commerce Question 41

Practice objective / multiple choice question 41 from the 2025 Neco Model Questions Vol1 Commerce examination.

Neco Model Questions Vol1 2025 Commerce Objective / Multiple Choice Medium Difficulty
Question 41 NECO_MODEL_QUESTIONS_VOL1 • 2025 • COMMERCE • objective

A bank offers a loan of \(\text{₦}500,000\) with a nominal annual interest rate of 12 % compounded quarterly. An upfront processing fee of 2 % of the loan amount is deducted, and a monthly service charge of \(\text{₦}2,000\) is added to each repayment. The borrower will repay the loan in equal monthly installments over 3 years. What is the amount of each monthly installment (including the service charge) the borrower must pay?

Answer Options

A. ₦19,000
B. ₦18,750
Correct Answer C. ₦18,250
D. ₦17,500
Correct Answer
C
Correct Option:
₦18,250

About This Question

This is Neco Model Questions Vol1 2025 Commerce Question 41. It is one of the objective questions from the 2025 Neco Model Questions Vol1 Commerce examination.

Difficulty level: Medium .

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