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