Radio,Television And Electronic Paper 2, WASSCE (SC), 2019

Question 6

 

      A technician intends to borrow a sum of ₦500,000 at a rate of 5% for 3 years to start a RTV  
business.

  1.      Calculate the total amount, A, payable at the end of the third year by;
    1. simple interest plan;
    2. compound interest plan.
  2. From your results in 6(a), state:
    1. the plan which the technician is likely to choose;
    2. one reason for your answer in 6(b)(i).
  3. state:
    1. two business management skills applied in making the decision in 6(b);
    2. four employment opportunities that would be created by the technician.

 

Observation

The expected answers were:

            (a) (i)        
                                                                                  
                                                                                        
                                   
                                                                
                                                                                     
                        (ii)                                                    
                                                                  
                                                              
                                                                              
(b)        (i)         Simple interest plan                                                                                        
            (ii)        It is cheaper/has less interest/has more gain                                                   

 

(c) (i)         Business management skills applied in making decision

  • Cost benefit analysis
  • Accounting practices/fund management skill
  • Business mathematics
  • Feasibility study
  • Business planning

(ii)        Employment opportunities that would be created by technician

  • Satellite installation technician
  • Salesman
  • Service craftsman
  • Receptionist
  • Account clerk
  • Workshop attendant
  • Cleaner.

The Chief Examiner reported that majority of the candidates attempted question 6 and quite a good number of them responded well. Candidates were encouraged to pay particular attention to ‘Entrepreneurship’ with some emphasis on accounting practices and cost benefit analysis.