MATHEMATICAL LITERACY

MORE EXERCISES

Financial Documents, tariffs, accounts, bills, rates.

Question 1

A certain Municipality has the following rates for the consumption of household water.
[ The consumption is determined by rounding up the reading to the next whole number of kl used.
Thus, 7,5 kl is rounded up to 8 kl].
VAT at 15% is added :

 From, kℓ To, kℓ Tariff per kℓ (R) From, kℓ To, kℓ Tariff per kℓ (R) 0 6 free 40 59 3,50 6 19 2,00 60 79 4,50 20 39 2,40 80 and more. 7,00

1.1  A household consumes 18 kℓ of water.
1.1.1  What is the tariff for this consumption?     A 1.1.1
1.1.2  Calculate the amount payable. Show all

1.3  An account for R235,65 is rendered for
a consumption of 75 kℓ. Test the
correctness of the account.
Show all your calculations.                             A 1.3

1.2  Another consumption is 38,12 kℓ.
Calculate the amount due. Show all

Question 2
John compiles the following budget :

 Income Rand Expenses Rand Salary 16 000 House-rent 5 800 Food 5 250 Clothes 1 600 Motor instalment 1 760 Motor maintenance 940 Entertainment 1 600 Save 600 Total Total

2.1  Determine John's expenses. Can he afford all his expenses?                                                        A 2.1
2.2  Suppose that he saves nothing. Does his budget balance? What can he still do to
balance his budget?                                                                                                                             A 2.2
2.3  He decides to save R300. What can he do to balance his budget now?                                        A 2.3

Question 3

A certain Municipality has the following rates for house-hold water consumption :
from 0 to 20 kℓ - R1/kℓ     and     from 21 to 40 kℓ - R2 / kℓ

3.1  Complete the following table :

 Consumption (kℓ) 0 10 20 21 30 40 Cost (R)

3.2  Draw a graph to represent the data.                                                                                                 A 3.2
3.3  What is the minimum cost for consumption in the interval 21 kℓ to 40 kℓ?                                     A 3.3
3.4  What is the maximum cost for consumption in the interval 0 kℓ to 20 kℓ?                                      A 3.4
3.5  Explain the form of your graph of a consumption from 0 kℓ to a consumtion of 20 kℓ.                 A 3.5
3.6  Estimate the coordinates of the point when the consumption is 12 kℓ. Mark the point D.            A 3.6
3.7  Estimate the coordinates of the point when the consumption is 27 kℓ. Mark the point E.            A 3.7
3.8  Now calculate the coordinates of point D.                                                                                       A 3.8

Question 4

The accompnaying graph shows the cost of two
contracts of a cellphone firm.

4.1  Where and why does the graph of
contract B begin?                                        A 4.1
4.2  Where and why does the graph of
contract A begin?                                        A 4.2
4.3  Which of the two contracts have the
greater cost per minute? Explain.              A 4.3
4.4  Estimate the cost for both contracts
if the time = 80 minutes.                             A 4.4
4.5  Estimate the time if the cost of
contract B is R121.                                     A 4.5

4.6  Where do the two graphs intersect? What does this imply?                                                            A 4.6
4.7  Calculate the cost per minute of both contracts if the cost of contract A is R250 and that
of contract B is R275 if the time = 250 minute.                                                                                A 4.7
4.8  Use the answers in 4.7 to test the accuracy of your estimations in 4.4 and 4.5. Show
all the calculations.                                                                                                                             A 4.8
4.9  When is the cost of contract B greater than that of contract A?                                                      A 4.9
4.10  Which contract, A or B, will you recommend to a person that uses less than
150 minutes per month? Supply reasons.                                                                                   A 4.10

Question 5

The accompanying graph shows the cost of
two contracts, P and Q, of a cell phone provider.

5.1  The graph of contract P is given by the
line ABC. Why does the first part, AB,
not begin in the origin? What does
this mean?                                                  A 5.1
5.2  Describe and explain the part BC.            A 5.2
5.3  Does the graph of contract Q
represent an increasing relation?
Explain.                                                       A 5.3
5.4  Which contract, P or Q, is the cheaper
for usage of less than 100 minutes
per month? Explain.                                   A 5.4
5.5  Which contract, P or Q, is the cheaper
for usage of more than 210 minutes
per month? Explain.                                  A 5.5
5.6  Which contract, P or Q, has the
lowest tariff per minute? Explain.             A 5.6

Question 6

Study the following account of XYZ Municipality.
provider.

6.1  Write down the Municipality's phone
number.                                                  A 6.1

6.2  Write down the Municipality's postal

6.3  What is the date of the account?          A 6.3

6.4  Who is the addressee?                         A 6.4

6.5  Why does the amount in the
a negative sign?                                    A 6.5

6.6  How much water has been used?        A 6.6

6.7  Is the amount for water usage
correct? Show your calculations.         A 6.7

6.8  Also calculate the amount for using
electricity. Show all

6.9  Calculate the amount in the last
row marked with ###.                            A 6.9

6.10  Are there any other mistakes on
the account? Show all your
calculations to rectify it.                       A 6.10

6.11  At what parcentage is the

XYZ Municipality
 13 Meandering Street       P.O. Box 34      Phone : 001 968 0001 Waterloo                         Waterloo           Fax: 001 968 0002 061208                            061208
 Mr. J Williams                                  Account for April 2015 P.O. Box 11                                     Date : 30/04/2015 Waterloo                                          Due date 14 / 05 / 2015 061208                                             Account number : 16169
Description Charge Amount VAT Amount
Brought forward          729,75
Water ## 77,30 ## 165,42
Elektricity ## ## 144,54 1 176,94
Refuse removal    50,00 7,00 57,00
Sewerage charge 53 63,60 8,90 72,50
Annual levy          373,46
Totals    ### 171,26 1 845,32

Type Previous Current Stand 0236
Water 3568 3621 Size (ha) 0,125
Elektricity 10524 11236 Value 925 000
Annual levy 3 931,20

 Notes :    1. Water rates :     0 kl to 6 kl - free 7 kl to 29 kl - R1,10 / kl 30 kl to 49 kl - R1,70 / kl 50 kl and more - R4,50 / kl 2. Elektricity rates :   R1,45 / unit 3. Arrears : Interest is added at 20% p.a. on overdue accounts and late payments.

Question 7

Study the bank statement of a current account.

7.1  Write down the date and the number
of the statement.                                          A 7.1

7.2  Why is the "Brought forward" balance
shown with a negative sign?                        A 7.2

7.3  Why are the amounts shown in the
Debit column shown as
negative numbers?                                     A 7.3

7.4  Calculate the balance after
AtoZ Services paid the salary. What and
why is the sign of the Balance?                 A 7.4

7.5  Calculate the Balance on 04.06.

7.6  Why is the amount shown in the
Credit column positive?                             A 7.6

7.7  Calculate the Balance on 04.18.                A 7.7

7.8  Calculate the Balance on 04.30 after
the Service fees have been added.          A 7.8

7.9  Calculate the interest on the
overdrawn account.                                    A 7.9

7.10  Calculate the Closing Balance
on 04.30                                                   A 7.10

The New Bank
 P.O. Box 201         Phone: 808 908 1001    2 May 2008 Stayhere                Fax: 808 908 1002        Invoice number : 121 081908
 Mr. S. Stephens P.O. Box 108 Stayhere 081908
Statement / Tax Invoice
VeryEasy                          Account number : 34501261

Details Date Debits Credits Balance
Brought forward          4,802.91−
AtoZ Services - salary 04.01    11,200.00 ##
Instament - life insurance 04.01 641.00−    ##
Instalment - insurance 04.01 387.75−    5,368.34
SafetyFirst 04.01 326.00−    5,042.34
The New Bank - instalment motor car 04.02 2,080.00−    2,962.34
TakeCare Garage 04.05 1,421.00−    1,541.34
Cash withdrawn 04.10 1,200.00−    3,039.20−
TakeCare Garage 04.12 927.00−    3,966.20−
Transfer from Account 12300075 04:18    1,500.00 ##
Service Fee 04:30 99:00−    ##
Interest - overdrawn account 04:30 ##    ##
 Rates due as on April 1, 2005 Interest is added to overdrawn accounts at the rate of 13,5% p.a. and is compounded monthly.

Please check all transactions and report any differences.

Question 8
 The following information for question 8 : 1.   Tax Rates for individuals : Taxable Income Rates of Tax 0.00 — 122 000 18% of each Rand 122 001 — 195 000 21 960 + 25% of the amount over 122 000 195 001 — 270 000 40 210 + 30% of the amount over 195 000 270 001 — 380 000 62 710 + 35% of the amount more than 270 000 2.   Each tax payer receives a deductable primary rebate of R8 280.00 per year. 3.   Overtime-rates: overtime 1.5 is calculated at the rate 1,5 times normal rate. overtime 2 is calculated at the rate of twice the normal rate.

Study the accompanying pay-slip and

8.1  Calculate Jack's earnings for
Overtime 1.5                                               A 8.1

8.2  Calculate the number of hours that
Jack worked on Overtime 2.                      A 8.2

8.3  Calculate Jack's total wages for
the month.                                                   A 8.3

8.4  Assume that Jack has this income
every month. Calculate the
Income Tax that he has to pay for
the year and the monthly deduction.         A 8.4

8.5  Every month Jack has to pay 1%
of his Salary to the UIF.
Calculate Jack's contribution.                   A 8.5

8.6  What percentage of his Salary is
deducted for Pension?                             A 8.6

8.7  Calculate the total deductions.                  A 8.7

8.8  Calculate Jack's net wages.                     A 8.8

ABC Works PAY SLIP
 P.O. Box 198          Phone: 111 010 1000 Goaway                  Fax: 111 010 1001              Date: 2009/08/30 80021
Name : Jack Hammer Employee code : W115
Account number : 00501623 Mechanic
Tariff: R85,00 per hour
Description Wages Deductions
Salary 13,200.00 Tax
Overtime 1,5 - 10 hours    UIF
Overtime 2 765.00 Pension 198.00
Welfare 85.25
Savings plan 500.00
Total    Total
Monthly Income

Gross
Deductions
Net

Question 9
Study the cah register slip alongside :

9.1  How many items were bought?                 A 9.1

9.2  How many plastic carrier bags
were bought?                                            A 9.2

9.3  What is the volume of the bags?             A 9.3

9.4  How many items on which VAT is
not levied, were bought?                         A 9.4

9.5  What is the value of the items
in 9.4?                                                       A 9.5

9.6  What is the value of the items
on which VAT is levied?                           A 9.6

9.7  Which packaging of eggs is
cheaper - the 18 eggs per pack
or the 6 eggs per pack. Show all

9.8  What is the cost of the yellow
peaches per kilogram?                            A 9.8

9.9  What is the price ot tomatoes per
kilogram?                                                  A 9.9

Cheap Store
Carrot Place
Phone : 000 010 0203
Cashier: Yolande Freeman

 APPLES RED 17.99 # APPLE VINEGAR 375 ml 12.79 RAISINS CHOICE GRADE 18.90 SWEETCORN WHOLE KERNELS 2 @ 10.99 21.98 SWEETCORN CREAMED 2 @ 11.99 23.98 FRUIT JUICE BERRIES 14.99 TUNA IN BRINE 2 @ 15.99 31.98 PEACHES YELLOW 0.96 KG 34.56 # CARROTS LOOSE 0.75 KG 11.24 # POTATOES SMALL 0.6 KG 6.00 # TOMATOES 0.908 KG 14.53 # EGGS LARGE 18 PACK 29.99 # EGGS LARGE 6 PACK 9.99 # CANOLA 1 kg 22.99 CARRIER BAGS PLASTIC 24 ℓ 4 @ 0.46 1.84 TOTAL DUE   TAXABLE VAT 291.68 TOTAL ITEMS 20 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - VAT INCLUDED 17.93 # VAT FREE - ZERO RATED