NCV 2 Mathematical Literacy Hands-On Training Case Studies Module 2

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Mathematical Literacy 2 Module 2 Answers to Case Studies Case studies module 2 1 Future Managers

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Solutions to Case Studies from Module 2 NCV 2 Mathematical Literacy Hands-On Training published by Future Managers (www.futuremanagers.net)

Transcript of NCV 2 Mathematical Literacy Hands-On Training Case Studies Module 2

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Mathematical Literacy 2Module 2

Answers to Case Studies

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Case Study: Benni Mokoena1. Why do you think Benni agreed to pay

R239.00 per month for the TV?

2. Do you think that Benni should pay for the TV, even though it was destroyed in the fire.

He agreed to pay, in order to have the TV now, and pay later

•He signed a contract saying he would

•The TV was in his possession

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3. How much would Benni have paid if he had stuck to his monthly instalments?

4. How much does a TV with the same specifications that Benni bought cost, if it is bought with cash?

Total payment = R239 x 24 = R5 736

Approximately R2 500

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5. What would you ask for when buying for cash?

6. Did Benni have spare money to pay for unforeseen expenses?

7. What other unforeseen events can you think of that could have similar results?

A cash discount

No

Theft, floods.

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Quotation – Easy BuyCustomer name Mr Benni Mokoena

Address: Walter Sisulu Drive, BotshabeloProduct Price Discount Excl Price

72 cm Colour TV R2630.70 00.00 R2630.70

Credit Agreement Detail

Value of goods R2630.70

Delivery charges R150.00

Deposit R00.00

Sub total R2780.70

Initiation fee R167.80

VAT R412.70

Total amount to be financed R3361.30

Finance charges @ annual rate 30.50% R1170.00

Total Credit Advanced R4531.30

Monthly life insurance costs R18.06 24 months R433.40

Monthly product insurance costs

R20.59 24 months R494.10

Monthly discounted service fee R11.40 24 months R273.60

Total amount repayable R5732.60

Monthly repayments 23 months R239

Final payment 1 month R235.61Case studies module 2 5Future Managers

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Benni’s Case (cont)While standing, waiting for his quotation, Benni notices a

television exactly like the one he had. The VAT inclusive cash price is R2 250!! When receiving his quote Benni was stunned … again!

1. Give at least 5 reasons why Benni was “stunned” by referring to the following:

• Insurances

• Delivery

• Interest rate

• “His” price vs the cash price

• Service fees

• Initiation fee

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2. What advice would you give Benni?

3. What can Benni do to stop being blacklisted?

Buy on cash as much as possible, and save for items that you want.

Keep his total debt level as low as possible. If he knows that he is not going to be able to make a payment then he should contact the company before he defaults.

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Case Study: The Mokoena Family

Refer back to all of the Mokoena family’s financial documents and answer the questions:

•Bank statement•Personal cheques•Dentist receipt•Utility bill•Foschini account•EasyBuy Quote•Travel calculations•TV licence

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Wonder Bank Ltd Bank statement from: 01/07/08 to 31/07/08

Current AccountMr. Benni MokoenaWalter Sisulu DriveBoshabeloBloemfontein

Date Ref Description Fees Dt Cr Bal

01/07/08 B/F 2216

ATM Cash Withdrawal 6.70 400 1809.30

06/07/08 ATM Cash Withdrawal 4.00 100 1705.30

515 DrWilliams 7.74 421.38 1276.18

06/07/08 ATM Cash Withdrawal 4.45 150 1121.73

08/07/08 Sasw Cash Withdrawal 6.70 250 865.03

08/07/08 516 Pick&Pay 11.44 758.3 95.29

08/08/08 Sasw Cash Withdrawal 4.85 100 -9.56

10/07/08 ATM Cell C Airtime 5.30 200 -214.86

10/07/08 517 Mr Price 6.68 325.50 -547.04

12/07/08 518 Council 4.25 104.52 -655.81

25/07/08 Internet Salary 2968.25 ?

25/07/08 Debit Foschini 4.86 160 ?

30/07/08 Debit TV 3.31 18.81 ?

30/07/08 Service fee Cheq 35.00 ?

30/07/08 Serv. Fee card 2.00 ?

30/07/08 Over the limit 79.00 2009.46

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Quotation – Easy BuyCustomer name Mr Benni Mokoena

Address: Walter Sisulu Drive, BotshabeloProduct Price Discount Excl Price

72 cm Colour TV R2630.70 00.00 R2630.70

Credit Agreement Detail

Value of goods R2630.70

Delivery charges R150.00

Deposit R00.00

Sub total R2780.70

Initiation fee R167.80

VAT R412.70

Total amount to be financed R3361.30

Finance charges @ annual rate 30.50% R1170.00

Total Credit Advanced R4531.30

Monthly life insurance costs R18.06 24 months R433.40

Monthly product insurance costs

R20.59 24 months R494.10

Monthly discounted service fee R11.40 24 months R273.60

Total amount repayable R5732.60

Monthly repayments 23 months R239

Final payment 1 month R235.61Case studies module 2 14Future Managers

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TV Licences Private Bag x 60

Auckland Park 2006

Mr. Benni MokoenaWalter Sisulu DriveBoshabeloBloemfontein

License renewal period:

2008/08/01-2009/07/31

Closing balance: 25,80

Date:

2007/07/20

Particulars:

Private Household

Amount: 225,00

Balance due: 250,80

120+ days 90 days 60 days 30 days Current Balance

25,80 225,80 250,80

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Case Study: The Mokoena Family1.Benni’s monthly instalment of R239 for the TV

that he bought and which was destroyed is not included on this bank statement. What are the reasons for this omission?

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Benni stopped paying for the TV after it was destroyed.

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Case Study: The Mokoena Family2.Why are all the debit orders coming off at the

end of the month on his bank statement?

They come off at the end of the month, since this is when Benni’s salary is likely to be at its highest

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Case Study: The Mokoena Family3. Which transactions on the bank statement

“cost” the most? Look at the bank charges that are linked to individual transactions?

The fee for being “over the limit” R79

The service fee for the cheque account R35

Payment of accounts to Pick n’ Pay (R11.44) and Dr Williams (R7.74)

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Case Study: The Mokoena Family4. If Mrs. Mokoena suddenly decides to “spend it

all” on her Foschini account, how much can she spend? Before answering, consider the “due date” on the account and refer back to their bank statement.

The amount she can immediately spend on her Foschini account is R4 140.

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Case Study: The Mokoena Family5. The dentist, Dr Williams, asked you to deposit the

cheque that Benni Mokoena give him. His account number is 601700 104. Use a deposit slip of any bank and assume Dr William’s account is at this bank.

Dr Williams

08 03 09

UR NameUR Name

09/03/08

6 0 1 7 0 0 1 0 4

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Case Study: The Mokoena Family6.Write a cheque to Pick & Pay for the amount

that is indicated Benni Mokoena’s bank statement. Use the alternative method for writing “cents” on the cheque itself.

Pick & Pay08/07/2008

Seven hundred and fifty eight rand and 30/100 758.30

B Mokoena

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Case Study: The Mokoena Family7. Not all the Mokoena’s family’s financial

information is shown on the bank statement. Make a list of income and expenses that is either not shown or only shown in an indirect way. In other words, although money was withdrawn from the account, what was it used for?

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Case Study: The Mokoena Family8. Budgeting:

• Compile a budget for the Mokoena family given all the information contained in the financial documents. Use the “NCA budget” document to compile the document

• Make recommendations to assist them to balance their budget

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