Neco 2025 Computer Studies Question 5
Practice objective / multiple choice question 5 from the 2025 Neco Computer Studies examination.
A loan of \( \text{₦}500{,}000 \) is to be repaid over 5 years with monthly payments. The monthly payment \( P \) is given by the amortisation formula \( P = L \frac{r(1+r)^{n}}{(1+r)^{n}-1} \), where \( L \) is the loan amount, \( r \) is the monthly interest rate and \( n \) is the total number of payments. If the observed monthly payment is \( \text{₦}9{,}500 \), determine the annual nominal interest rate (to two decimal places). Show the steps you would use in a spreadsheet to obtain the rate (e.g., using Goal Seek or the RATE function) and give the resulting rate.
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About This Question
This is Neco 2025 Computer Studies Question 5. It is one of the objective questions from the 2025 Neco Computer Studies examination.
Difficulty level: Hard .
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