Western Cape Education Department

Directorate: Curriculum

CURRICULUM FET
Mathematical Literacy
LEARNER BOOKLET
TOPIC: Revision Term 1 Finance

Part A
JUST IN
GRADE12
TIME

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WCED Mathematical Literacy

Term 1 Revision: Finance
Notes
Topic: Finance
Paper: 1
Focus: Financial documents; taxation; tariffs; income, expenditure, profit & loss, cost price &
selling price, interest & banking, Inflation, exchange rates
Weeks on ATP: Term 1 week 1-5 and 10 & 11
Unit: Financial Documents & Tariffs
What must you be able to do at the end of this unit?
Financial documents:
 Understand terminology used in documents
 Explain and demonstrate how the values appearing in the documents have been determined
Tariff Systems:
 Calculate costs using given tariffs and/or formulae.
 Draw and interpret graphs of various tariffs systems

Levels of questions on this unit:

Remember to go over all the important terminology for this unit!

Revision Question on Financial Documents:

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1.. ANNEXURE B shows the credit card statement of Son

Use the information in ANNEXURE B to answer the questions that follow.

ANNEXURE B:

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1.1 Determine the number of days covered by this credit card statement. (2)
1.2 Use the transaction details and show, with calculations, how the closing balance was calculated. (5)
1.3 Explain why the bank omitted some digits from the account number on the statement (2)
1.4 The bank offers an insurance option on the outstanding balance of the credit card account by (5)
charging a rate of R3,50 per RI 000 (or part thereof) on the outstanding balance. Calculate how
much Mr Son would have paid for insurance on the outstanding balance of this statement if he
had chosen this option.
1.5 Interpret the amount for balance brought forward for this statement (2)
1.6 Give ONE possible reason why Mr Son might purchase goods using his credit card instead of
paying cash for the goods. (2)
2. Bongiwe received her levy statement of account from Rango Property Specialist for her rented
unit.

ANNEXURE A shows her adapted statement of account

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2.1 Write down the reference number that Bongiwe must use when she pays her account. (2)
2.2 Give ONE reason why reference numbers are used when making payments (2)
2.3 Calculate the missing value A, which has been omitted from the statement. (2)
2.4 The total amount due for this invoice is R2 340, 73, including 15% VAT (2)
Calculate the total amount due, excluding VAT
2.5 Calculate (rounded to TWO decimal places) the standard levy for June 2021 as a percentage of (4)
the amount due on the statement.
2.6 Write down a possible payment option Rango Property Specialist will accept (2)
Revision Question on Tariffs:
1 The sanitation tariffs for Johannesburg and Cape Town are presented in TABLE 3.

Johannesburg uses the area of a property to determine the sanitation bill. Cape Town uses a
percentage of the total water usage to determine the sanitation bill (the same way as they calculate
the water bill.)

TABLE 1 shows the tariffs of Johannesburg (excluding VAT) and Cape Town (including VAT).

TABLE 1: SANITATION TARIFFS FOR JOHANNESBURG AND CAPE TOWN

JOHANNESBURG: SANITATION TARIFFS - DOMESTIC AT excl.
2
Up to and including 300 m R228,06

Lar er than 300 m2 to 1 000 m2 R443,96

Larger than 1 000 m2 to 2 000 m2 R671,63

Larger than 2 000 m2 R967,71

CAPE TOWN: SANITATION TARIFFS - DOMESTIC VAT incl.

USAGE TARIFF INCREASE FROM
PREVIOUS
0-4,2 kℓ R16,03 per kℓ R0,66 increase per kℓ

R22,02 per kℓ R0,91 increase per kℓ

R30,92 per kℓ R1 ,28 increase per kℓ

24,5-35 kℓ R48,65 per kℓ R2,01 increase per kℓ

[Adapted from www.pikitup.co.za and www.capetown. gov.za]

NOTE: Sanitation refers to waste water that is drained from a household.

Use the information above to answer the questions that follow

1.1 Write down, to the nearest ten cents and excluding VAT, the cost for sanitation in Johannesburg if (2)
a property is 175 m2

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1.2 Calculate the cost for 4,1 kℓ sanitation in Cape Town before the increase (4)
1.3 Mr Jones lives in Johannesburg and Ms Brown lives in Cape Town. They both own a property
with an area of 550 m2 and each was billed for 22 kℓ sanitation.

Use the table above to determine the difference in the cost of sanitation for the two properties. (8)
1.4 Explain how the tariff system used in Johannesburg is beneficial to home owners in terms of (2)
water usage

2 Mrs Venter has a prepaid electricity meter in her home. The municipality uses sliding scale tariffs
for prepaid electricity. The more electricity you purchase in a calendar month the higher the
subsequent tariff becomes.

TABLE 1 below shows the standard sliding scale tariffs per month for prepaid electricity.
TABLE 1: 2014/2015 Standard sliding scale tariffs per month for prepaid electricity
NUMBER OF UNITS TARIFF
(INCLUDING 15% VAT)
The first 500 kWh R1,0746 per unit
501 to 1 000 kWh R1,2208 per unit
1 001 to 2 000 kWh R1,3109 per unit
2 001 to 3 000 kWh R1,4809 per unit
More than 3 000 kWh R1,6048 per unit
[Source: citypower.co.za]
1 unit = 1 kWh

The following photographs of Mrs Venter's electricity meter show the meter readings (in kWh)
before and after her first purchase of electricity for the month of May.

02/05/15 02/05/15
Before purchase After purchase

2.1 Mrs Venter purchased R360 worth of electricity on 2 May 2015.

(a) Show that the meter reading after the purchase is CORRECT. (3)
(b) Calculate the VAT amount on this electricity purchase. (3)
2.2 On 25 May 2015 the meter reading was 250,7 kWh. How many kWh units of electricity were (2)
used from the day of purchase up to this date?
2.3 On 1 June 2015 Mrs Venter purchased 560 units of electricity. Calculate the cost of her purchase. (6)

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2.4 If the prepaid electricity tariffs are due to increase by 13,5% on 1 July 2015, calculate the new (3)
tariff per unit for units between 2 001 and 3 000 kWh.

Unit: Income, expenditure, profit/loss, income-and- expenditure statements and budgets:

What must you be able to do at the end of this unit?
Income, expenditure, profit/loss, income-and- expenditure statements and budgets:
 Manage finances by:
- analysing and preparing income-and-expenditure statements and budgets, with an awareness
of the difference between these two documents, for:
- an individual and/or household
- a trip (e.g. holiday)
- personal projects (e.g. dinner party; significant purchases such as a cell phone, television or
furniture)
-a small business (e.g. spaza shop), including:
o a comparison of income/expenditure/profit values over two years (analysis only)
o budgets showing a comparison of projected versus actual income, expenditure and profit/loss
values (analysis only)
- large projects and/or events (e.g. fund-raising event or a wedding)
- large organisations (analysis only) (e.g. municipality or provincial/national government),
including:
o a comparison of income/expenditure/profit values over two years of budgets showing a
comparison of projected vs actual income, expenditure and profit/loss values
- considering the importance of saving for occasional or future expenses.

Levels of questions on this unit:

Remember to go over all the important terminology for this unit!

Revision Question on Income, expenditure, profit/loss, income-and- expenditure statements

and budgets::

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1. ANNEXURE A shows a summary of the Income and Expenditure statement with notes of the
South African National Blood Service (SANBS) for the financial year ended 3 1 March 2016.
Some of the amounts have been omitted.

1.1 Communication costs decreased by 4,402% from 2015 to 2016 (4)

Calculate (to the nearest thousand rand) the communication costs for 2016
1.2 The SANBS imports 75% of its product testing material and consumables. Explain what possible (2)
impact a weakening of the rand will have on their total profit for the year
1.3 Compare, showing ALL calculations, the 2015 and 2016 percentage profit for the SANBS. (5)
You may use the following formula

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𝐴𝑛𝑛𝑢𝑎𝑙 𝑡𝑜𝑡𝑎𝑙 𝑝𝑟𝑜𝑓𝑖𝑡

𝑃𝑒𝑟𝑐𝑒𝑛𝑡𝑎𝑔𝑒 𝑝𝑟𝑜𝑓𝑖𝑡 = × 100%
𝑇𝑜𝑡𝑎𝑙 𝑎𝑛𝑛𝑢𝑎𝑙 𝑝𝑟𝑖𝑚𝑎𝑟𝑦 𝑖𝑛𝑐𝑜𝑚𝑒

2. The TABLE below shows the national budget and education budget of South Africa for 2017/18

TABLE: NATIONAL BUDGET AND EDUCATION BUDGET OF SOUTH AFRICA FOR

2017/18

NATIONAL BUDGET OF SOUTH EDUCATION BUDGET OF SOUTH

AFRICA (IN RAND) AFRICA (IN RAND)
Economic affairs and culture 241,6 billion Basic Education 216,7 billion
Defence and public safety 198,7 billion University subsidies 31,6 billion
Health 187,5 billion Education Administration 15,8 billion
General Admin 70,7 billion Skills development levy 21,1 billion
Local development and 195,8 billion National student financial aid 15,3 billion
infrastucture scheme (NSFAS)
Debt service costs 162,4 billion Technical and Vocational 7,5 billion
education and training (TVET)
Social protection 180,0 billion Other 12,5 billion
Education 320,5 billion
Adapted from www.graphics24.com
Use the TABLE above to answer the questions that follow.
2.1 Which of the amounts below represents the economics affairs and agriculture budgets?
A 24 160 000 (2)
B 241 600 000 000
C 241 600 000
D 24 160 000 000 000
2.2 Explain the budget within the context above. (2)
2.3 Write down the item which receives the third most money from the education budget. (2)
2.4 Calculate the percentage of the total education budget that is allocated to NSFAS. (3)
2.5 University subsidies comprise about 9,86% of the total education budget. Estimate the combined (2)
budget, as a percentage, for education administration and the NSFAS.

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Unit: Cost Price, Selling Price & Break-even:

What must you be able to do at the end of this unit?
Cost Price & Selling Price:
 Determine the cost of production and/or cost price of an item or service, with an understanding
of the difference between these two costs.
 Decide on an appropriate selling price for an item and/or service based on an expected
percentage profit.
 Investigate the running of a small business with consideration of the following for the business:
• income-and-expenditure statements
• budgets
• break-even analysis (see the section below on Break-even analysis)
• the cost of production, cost price and selling price of an item or service sold/rendered by the
business.
Break-even Analysis:
 the break-even values for a business with consideration of cost price, selling price, income and
expenditure values
 the values for which two or more different costing options are equal (e.g. different cell phone or
electricity costing options).
Levels of questions on this unit:

Remember to go over all the important terminology for this unit!

Revision Question on Unit: Cost Price, Selling Price & Break-even:

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1 Due to the impact of no spectators at sport events the Aspen Sport Centre started looking at additional
sources of income. They decided to rent out their venue to the community as an additional source of
income. The Sport Centre decided that they will ask a fixed rate for the renting of the venue instead
of asking a rate per person attending.

TABLE 1 indicates the income and expenses of the Sport Centre when it is rented out to the
community.

TABLE 1: INCOME AND EXPENSES OF THE COMMUNITY CENTRE

INCOME EXPENSES
Monthly subsidy from Monthly maintenance of the Sport
R7 500 R15 000
the municipality Centre
Additional expenses for community
Renting of venue to the
R10 000 function (security, generators, R7 500
community.
waiters, bartender etc.)

TABLE 2 indicates the total monthly income and expenses of the Community Centre for several
functions held.

TABLE 2: TOTAL MONTHLY INCOME AND EXPENSES OF THE CENTRE

Number of functions
held at the centre per 0 2 4 6 10
month
Total monthly income …
7 500 27 500 47 500 67 500 107 500
(R)
Total monthly expenses
15 000 30 000 45 000 60 000 90 000
(R)

The following formula was used to calculate the total expenses:

Total monthly expenses = R15 000 + (R7 500 × number of functions per month)

Use the tables and formula above and answer the following questions
1.1 Write down the total fixed income of the Sport Centre per month. (2)
1.2 Construct a formula to represent the total monthly income. (2)
1.3 Use TABLE 2 to draw the line graph of the total monthly income on the same set of axes on the (5)
attached ANSWER SHEET.
1.4 Use the graph to write down the break-even point. (2)
1.5 The Aspen Sport Centre claimed that they will make a maximum profit of R20 000 if they have 13 (6)
community functions per month in their centre.

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Verify, showing all calculations if their statement is valid.`

ANSWER SHEET: GRADE 12 (……)
QUESTION 1.5 NAME OF LEARNER: ………………………………………

TOTAL MONTHLY INCOME AND EXPENSES

100 000

80 000
Amount (R)

60 000

40 000

20 000

0
0 2 4 6 8 10
Number of functions per month

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2 Calitzdorp High School decided to sell cell phone protectors with the school’s badge and the person’s
name on it. Some of the profit will be used to establish a new computer lab.

PICTURE OF CELL PHONE PROTECTOR:

The production cost for these personalised cell phone protectors is given
by the following formula:

Production cost of the cell phone protectors

= R3 000 + R40 × number of cell phone protectors

The personalised cell phone protectors will be sold for R90,00 per
protector.

TABLE 5 below shows the production cost and income for selling the cell
phone protectors in Rand.
Joey
Anthony
Grade 12

TABLE 5: Production cost and income for selling cell phone protectors (in Rand)

Number of cell phone protectors 0 100 300 500 800

Production cost (in Rand) 3 000 7 000 15 000 23 000 B
Income (in Rand) 0 9 000 A 45 000 72 000

2.1 Calculate the missing values A and B. (4)

2.2 The graph on ANSWER SHEET 1 shows the total income for selling the cell phone protectors. (4)

On the same set of axes provided on ANSWER SHEET 1, draw another line graph that represents the
production cost for manufacturing the cell phone protectors.
2.3 Write down the break-even point from the graph. (2)

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ANSWER SHEET 1
QUESTION 2.2
NAME OF LEARNER: ……………………………………………………………………
GRADE 12: ……
Cost and income of cellphone protectors
80000

70000

60000

50000
Amount in Rand

40000

30000

20000

10000

0
0 200 400 600 800
Number of cellphone covers

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Unit: Interest,Banking,Loans & Investments:

What must you be able to do at the end of this unit?
Interest:
 Distinguish between “interest rate” values and “interest” values.
 Investigate through calculation how interest values are calculated using interest rate values.
 Perform calculations involving simple and compound interest through manual calculations
 Represent simple interest growth scenarios using linear graphs and compound interest growth
scenarios using graphs showing compound change
 Investigate the following scenarios
•loan agreements between family members where repayments are made only once at the end
of the loan
• investments in fixed deposit accounts where the money is deposited and withdrawn from the
account only once
• bank accounts with a changing balance
• hire-purchase agreements and loans (e.g. personal, car, house) where a repayment is made
every month
• other investments (e.g. retirement annuities, funeral plans) where a fixed deposit is made every
month.
Banking,Loans and Investments:
 Interpret banking documents and understand the terminology in the documents
 Determine bank charges for different types of accounts using given fee tables and formulae.
 Draw graphs from given bank charge formulae to represent bank charges for different
transaction amounts on different types of accounts.
 Compare bank charges of different banks using tariff tables, given formulae and drawn graphs
to assess the suitability of different accounts for individuals with particular needs.
 Investigate the advantages and disadvantages of the different types of accounts regarding
access to money, bank charges and interest rates.
 Investigate the implications of late payments on a credit card account.
 Investigate the different ways in which interest is calculated on different types of accounts
 Identify and understand the following elements of loan and investment situations:
•Loans: borrower; lender ; interest rate; deposit; repayment; loan term (life); real (total) cost of a
loan; interest; residual (for a car loan)
•Investments: principal; interest rate;monthly payment; investment term (life);interest; charges
 Model loan and investment scenarios
 Determine the real cost of a loan and the interest paid on a loan.
 Determine the total amount of money in an investment at the end of a certain time period.
 Make sense of graphs showing loan and investment scenarios
 Investigate the effect of changes in the interest rate on the cost of a loan and on the
final/projected value of an investment.
 Investigate the effect of changes in the monthly repayment amount on the real cost of a loan.
 Investigate the effect of changes in the monthly investment amount on the value of the final
investment.
Levels of questions on this unit:

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Remember to go over all the important terminology for this unit!

Revision Question on Interest,Banking,Loans & Investments:

1. A company installed computers at a computer centre in October 2015. The manager used a bank
account to pay the employees' wages for the project.
Below is a comparison of the cash-withdrawal fee structures of two banks in 2015 and the
percentage changes in fees from 2014, as well as the calendar for
October 2015.
TABLE 1: CASH-WITHDRAWAL FEE STRUCTURE OF TWO BANKS

Bank: 2015 FEE FEE PER R 1 % CHANGE IN FEES FROM

000 2014
X R3,95 + R1,30 per R100 … 3,0
Y R4,00 + 1,15% of withdrawal R15,50 A
amount

CALENDAR FOR OCTOBER 2015

Sun. Mon. Tue. Wed. Thu. Fri. Sat.

1 2 3 4 5 6 7
10 11 12 13 14

16 17 18 19 20 21

22 23 25 26 27 28

29 30 31

NOTE: Employees did not work over weekends.

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Use TABLE 1 and the calendar above to answer the following questions
1.1 Determine the probability of randomly selecting a workday in October 2015 with a date that is an (3)
even number
1.2 Give ONE valid reason why a company will not necessarily use a bank offering the lowest bank (2)
charges.
1.3 Determine the missing value of A (rounded off to ONE decimal place) if the 2014 withdrawal fee (5)
was equal to:
(R3,50 + 1,1% of the withdrawal amount)
You may use the following formula:
2015 𝑓𝑒𝑒 𝑝𝑒𝑟 𝑅 1 000
𝑃𝑒𝑟𝑐𝑒𝑛𝑡𝑎𝑔𝑒 𝐶ℎ𝑎𝑛𝑔𝑒 𝑖𝑛 𝑓𝑒𝑒𝑠 = ( − 1) × 100%
2014 𝑓𝑒𝑒 𝑝𝑒𝑟 𝑅 1 000
1.4 The company withdrew R 15 000 for the weekly wages every Friday. The financial officer (7)
stated that the company would have saved more than R90 in withdrawal fees if they had
used Bank Y rather than Bank X for the four withdrawals. Verify whether this statement is
valid
1.5 Calculate an employee's total monthly wage if he earned R2 142,85 per week in October (4)
2015. Assume that the employee was not absent and did not work overtime in this month.
2. Mapotjo contributes a regular monthly amount from her salary towards a retirement annuity. This amount
is deducted from her salary through a stop order on the 1 5 th day of each month.

Below is a summary of the statement of her retirement annuity, as on 10 May 2017

Policy number 0097541

Maturity date 1 November 2029
Monthly contribution R740,22
Payment frequency Monthly
Current death value R189 817,05
Retirement value — Lower inflation rate R536 523,25
Retirement value — Higher inflation rate R940 465,89
[Source: www.my portfolio. co.za]

Use the information above to answer the questions that follow.

2.1 Define the concept stop order. (2)

2.2 Calculate the difference between the TWO retirement values. (2)
2.3 Determine the number of monthly contributions that still need to be paid by Mapotjo before the (4)
policy matures.

2.4 Determine the total value of the contributions over five years if her monthly contribution remains (3)
the same.

2.5 Fill in the missing word(s) to make the following statement TRUE. (2)

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An annual increase in the monthly contribution would result in maturity value

2.6 Show that if her monthly contribution increased by 8,5%, then the new monthly deduction from her salary (2)
would be R803, 14.

3 Josh saved R500,00 each month since earning his first profit.

He has now accumulated an amount of RI 7 000,00.

TABLE 2 below shows the simple interest rates that would be earned over fixed time periods for
amounts ranging from R10 000,00 to R99 999,00.

TABLE 2: SIMPLE INTEREST RATES FOR FIXED TIME PERIODS:

Use TABLE 2 above to answer the questions that follow:

3.1 Determine (in months) how long he took to save R17 000,00. (2)

3.2 Write down the interest rate he will get if he invests his money. (2)

3.3 Determine (rounded to the nearest R100) the amount of interest Josh will earn if he invests his (3)
accumulated savings for 3 years.

3.4 Sifiso wants to invest R24 000,00 for 48 months instead of 12 months (2)
Calculate the difference in percentage points for the interest rate.

3.5 Write down the minimum number of years and months a person must invest R25 000,00 to earn (3)
an interest rate of 8,41 %.

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Unit: Inflation:
What must you be able to do at the end of this unit?
Inflation:
Recognise that:
 inflation is a measure of the change in the purchasing power of money over time
 inflation represents the average increase in the prices of a variety of goods and services over
time and that different items can have different inflation rates
Investigate, through calculation and discussion, the impact of inflation on:
 purchasing power
 the value of an item over time
 Compare the rates of increase/decrease in prices through calculation
 Interpret and analyse graphs showing changes in the inflation rate over time and understand that
a decreasing graph does not necessarily indicate negative inflation
 Evaluate situations involving proposed price increases

Levels of questions on this unit:

Remember to go over all the important terminology for this unit!

Revision Question on Inflation:

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1.

Use the information above to answer the questions that follow.

1.1 Explain the term inflation within the given context. (2)
1.2 Write down the price of a Spur burger in 1970. (2)
1.3 Calculate by how much the cost, in rand, of a trolley had increased from 2000 to 2005. (3)
1.4 Calculate the percentage increase of Ricoffy from 1970 to 2015. (3)

1.5 A cheddamelt steak was sold for R104,90 at a profit of 17,5%. Determine the cost price. (2)

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2 TABLE 1 below shows a list with the annual inflation rates for some countries.

TABLE 1: Annual inflation rates for some countries during 2014

Annual inflation rates
Country Month
(%)
Montenegro –1,20 July
Spain –0,85 July
Cyprus –0,58 July
Switzerland 0,00 July
Cameroon 1,06 March
Austria 3,00 June
South Africa 6,30 July
Egypt 10,61 February
Venezuela 60,90 May
[Adapted from en.wikipedia/list of counties by inflation rate]
2.1 A South African tourist visited Switzerland during July 2014 and paid the equivalent of R75 for a (3)
standard cup of coffee when the exchange rate was R14,2417 per euro.

Determine (in euros) the expected price of a standard cup of coffee in Switzerland during 2015, if
the inflation rate did not change.
2.2 The annual inflation rate for flat rental in Egypt remained unchanged for the past few years and is
identical to the 2014 annual inflation rate.
(a) Calculate the monthly rental during 2014 for a flat which had a monthly rental of 1654EGP (4)
(Egyptian pound) two years ago.
(b) Mr Lesufi owns similar flats in South Africa. During 2012 the monthly rental for these flats was (7)
R4 613,20 and during 2014 the monthly rental was R5 212,77.

Mr Lesufi claims that the percentage monthly rental increase is half the percentage rental increase
in Egypt over the same two years.

Verify whether his claim is valid. Show ALL necessary calculations.

Unit: Taxation
What must you be able to do at the end of this unit?
VAT & UIF:
 Develop an understanding of the difference between a “VAT inclusive” value and a value
“excluding VAT”.
 Investigate through calculation how a final price has been determined by adding 15% VAT to a
price excluding VAT.
 Investigate through calculation the amount of VAT that has been added to a “VAT inclusive”
price.
 Develop an understanding of why UIF is deducted, the benefits to the employee and the
responsibility of the employer.
 Investigate through calculation how UIF values are calculated as a percentage of gross income

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Income Tax:
 Determine an individual’s:
• taxable income
• personal income tax
• net pay
 Analyse, interpret and understand completed tax return forms issued by SARS as well as IRP5 forms
supplied by the employer.
 Investigate the effect of an increase in salary on the amount of income tax payable.

Levels of questions on this unit:

Remember to go over all the important terminology for this unit!

Revision Question on Taxation:

1. Mr Piedt earns an annual taxable income of R542 096,76.

TABLE 1 below is a tax table that shows how much personal income tax he needs to pay.

TABLE 1: INCOME TAX RATES FOR INDIVIDUALS

2017 TAX YEAR 1 MARCH 2016-28 FEBRUARY 2017
TAX TAXABLE
TAX RATES (R)
BRACKET INCOME (R)

1 0-188 000 18% of taxable income

2 188 001-293 600 33 840 + 26% of taxable income above 188 000

3 293 601-406 400 61 296 + 31% of taxable income above 293 600

4 406 401-550 100 96 264 + 36% of taxable income above 406 400

5 550 101-701 300 147 996 + 39% of taxable income above 550 100

6 701 301 and above 206 964 + 41% of taxable income above 701 300
Adapted from www.SARS.gov.za

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1.1 What does the acronym SARS stand for? (2)

1.2 Write down the minimum amount of tax payable for tax bracket 3 (3)
1.3 Calculate Mr Piedt's average monthly taxable income. (2)
1.4 Identify the tax bracket applicable to Mr Piedt's taxable income (2)

2. ANNEXURE C shows the tax rates for individuals for the 2018/2019 tax year. John (68 years
old) received a taxable income of R2 045 364 for the 2018/2019 tax year. He paid a monthly
contribution towards a medical scheme for himself and his wife.

Use the information above and ANNEXURE C to answer the questions that follow.

2.1 Calculate John's total medical scheme tax rebate for the year. (3)
2.2 Hence, calculate the amount of income tax he had to pay for the 2018/2019 tax year. (8)

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3. Mr Louw, aged 53, earned an annual taxable income of R495 602 for the year ending 28 February
2022. He does not contribute to any medical aid.

Use the above information to answer the questions that follow

3.1 The following formula can be used to calculate annual tax payable before the rebate
Annual Tax Payable before the rebate
= RI 15 762 + [36% x (annual taxable income — 488 700)]

Use this formula to calculate Mr Louw's annual tax payable before the rebate (3)

3.2 Mr Louw feels that the monthly tax table is an easier option for him to calculate his monthly tax
payable TABLE 5 below shows the monthly deductions for three income categories for the year
ending 28 February 2022.

TABLE 5: MONTHLY DEDUCTION TAX TABLE FOR THREE INCOME CATEGORIES

FOR THE YEAR ENDING 28 FEBRUARY 2022

Monthly Income Tax payable per age group

Under 65 65-74 Over 75

R41 241-R41 291 R8 473 R7 723 R7 473
R41 292-R41 342 R8 491 R7 741 R7 491
R41 343-R41 393 R8 510 R7 760 R7 510

The monthly rebate for a person younger than 65 years old is RI 368, 75.

Verify, showing ALL calculations, whether his monthly tax will be correct according to the (6)
monthly deduction table.

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 Western Cape Education Department
Directorate: Curriculum

Unit: Exchange Rates

What must you be able to do at the end of this unit?
Exchange Rates:
 Estimate+ the value of a currency in relation to other currencies.
 Recognise the meaning of the terms “strong” and “weak” with regard to the relationship
between different currencies.
 Develop an understanding of the “buying power” of a currency in a particular country.
 Plan trips, to include:
• a travel budget
• maps and distance tables to organise travel routes#
• bus, train, airplane and taxi timetables and fare tables
 • calendars.

Levels of questions on this unit:

Remember to go over all the important terminology for this unit!

Revision Question on Exchange Rates:

1. John's daughter, Megan, works in Denmark. She earns an annual gross salary of Kr600 000 (Kr is
the unit for Danish kroner.) She informed her father that she had the following annual deductions
from her salary:
Kr229 760 for investment policy
Kr48 000 for labour market contribution
Kr37 200 for employment deduction

1.1 Calculate, in rand, Megan's annual gross salary using the following exchange rates: (4)
Euro 1 15,64 South African Rand
Euro 1 7,47 Danish Kroner
1.2 John stated that Megan's total annual deductions (excluding tax) are more than 52% of her annual
gross salary.

Verify, showing ALL calculations, whether this statement is valid. (4)

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 Western Cape Education Department
Directorate: Curriculum

2 Anelle’s brother Tony, who lives in the United States of America, decided to send her money to
buy the vegetable slicer using Option 1.
TABLE 1 below shows the exchange rate of South Africa in relation to the currencies of other
countries.
TABLE 1: EXCHANGE RATES TABLE ON 6 FEBRUARY 2020

Use the information and TABLE 1 above to answer the questions that follow.
2.1 Explain what the term exchange rate means. (2)
2.2 Identify the currence that is weaker than the rand. (2)
2.3 Tony sent Anelle US$130,00. (3)

Determine, rounded to the nearest rand, the amount Anelle received from Toney.

pg. 26