NCV 2 Mathematical Literacy Hands-On Training Solution to Summative Assessment 2

Mathematical Literacy 2Module 2

Answers to Assessment Questions

Mathematical Literacy 1Future Managers

Self Assessment Pg 561. Francois, who lives on his own in a rented room, wrote down

in a note book the following amounts that passed through his hands during the month of August:Food bought at the local grocer each weekend to the total of R800,00 for the whole month; room rental of R750,00 paid; clothes bought to the value of R500,00; cell phone air time of R220,00; daily taxi fair to and from work at R7,00 per day; other occasional travelling expenses R50,00; lunches every working day costs him R25,00; he buys four R5,00 lotto tickets each Saturday; he goes to the pub every Saturday and drinks two quarts of beer, which he buys at R7,00 per quart; he smokes 20 cigarettes per day but has not calculated what this costs him; he receives a salary of R4000,00 per month from which 1% UIF is deducted. Tax is subtracted every month at the rate of 18%.


a. Organise Francois’s money matters for him neatly into a table separating Income and Expenses

Monthly Income: Amount Fixed

Variable

Salary 4000,00 √

Subtraction (UIF at 1%; Tax: 18%) 760,00 √

Net Income 3240,00

Monthly Expenses:

Food 800,00 √

Room rental 750,00 √

Clothes 500,00 √

Cell phone 220,00 √

Travel costs 190,00 √ √

Lunches 500,00 √

Lotto 80,00 √

Beer 56,00 √

Cigarettes 476,00 √

Total Expenses: 3572,00

Income after Expenses: -332,00


• Calculate his net income i.e. after deductions.

• Calculate the amount he has left after all his expenses have been subtracted from his net income.

Francois earns R4000 per month. He pays 18% tax and 1% UIF. Tax = R4000 x 0.18 = R720; UIF = R40

Total deductions = R760

Net income = R3 240

Income after expenses = R3240 - R3572 = - R388 Mathematical Literacy 4Future Managers

a. Advise him on actions to take with regard to a safe financial future. For example, advise him on how to save and why he should save.

Francois should think about the fact that he is smoking to the value of R5712 per year. His annual cell phone costs are also high at R2640.

Lotto for the year comes to almost R1000. These three items add up to the value of two months’ salaries. He should contemplate whether it would not be better for him in the long run to save this money as there will come a time when he will have medical expenses as well as other responsibilities. Mathematical Literacy 5Future Managers

1. Rosie is a single mother of one child, whose name is Lily. Rosie and Lily live in a rented flat. She has the following expenses per month

Expense Item Fixed or Var Amount % of Income

Rental amount of room 650

Crèche fees for Lily 350

Food 950

Taxi fare 300

Telephone 180

Entertainment 100

Money saved 250

Clothes 150

Lotto 80

Cigarettes 100

Total

x x

x x x x x x x x

(a) R3110


• She earns R800 per week (four times per month), and receives maintenance money of R150 each month from Lily’s father. Calculate her monthly income

Rosie’s Income = Salary + Maintenance

= R800 x 4 +R150

= R3 350


Expense Item Fixed or Var Amount % of Income

Rental amount of room 650

Crèche fees for Lily 350

Food 950

Taxi fare 300

Telephone 180

Entertainment 100

Money saved 250

Clothes 150

Lotto 80

Cigarettes 100

Total

x

x

x

x

x

x

x

x

x

x

(a) R3110

19,4

10,4

28,4

9,0

5,4

3,0

7,5

4,5

2,4

3,0


Rosie's Expenditure

Rental21%

Creche11%

Food30%

Taxi10%

Phone6%

Entertainment3%

Money saved8%

Clothes5%

Lotto3%

Cigarettes3%


`• Calculate how much money Rosie has left after

deducting all her expenses for the month.

• What would you advise Rosie to do with any remaining money?

Money remaining = Total income – Total expenditure = R3 350 – R3 110

= R240

Rosie should put any extra money in a savings account as she has not budgeted for clothes, medical expense and any other possible unforeseen expenses. Mathematical Literacy 10Future Managers

Self Assessment Pg 61From the income statement of Francois’s parents. a budget can be compiled given their expected fixed income of R7 550 per month

Expense Budget % Expense April Exp Variance Var %

Rent 2050 2050

Insurance 400 400

W + E 265 300

Phone 480 500

Transport 300 350

School 265 265

Clothes 250 100

Medical 146 200

Food 2850 3500

Savings 250 200

Entertain 300

Total (a) R7556 (b) R7865

(c)R0

27,15

5,29

3,51

6,3

3,97

3,5

3,3

1,93

37,72

3,3

3,97

100

0

0

+35

+20

+50

0

-150

+54

+650

-50

-300

0

0

+13,2%

+4,2%

+16,7%

0

-60%

+37%

+52,6

-20%

-100%


Summative Assessment

TV Licences Private Bag x 60

Auckland Park 2006Mr. 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


Summative AssessmentOn the previous slide is Benni Mokoena’s TV license that

he had to buy when he bought his TV.2. Answer the questions below3. Complete a direct deposit slip from a bank to clear the

accountQuestions:5. What does “closing balance” mean?

8. What does “120 days or more” mean?

The balance at the end of the period

It means debt that is over 120 days oldMathematical Literacy 13Future Managers

• What is the total amount you have to pay?

• What is the due date of payment?

It means debt that is over 120 days old

20 July 2007


a. In fine print beneath the account is typed: A fine of 10% per month is levied on late payments. How much will your balance be if you are one month late?

d. What type of expense is a TV license – fixed or variable?

R25,08

Fixed


1. From Wonder Bank’s table of banking costs – Calculate the following:

a. Withdrawal over the counter of R250

c. ATM Cash withdrawal of R1 050 at a SASWITCH terminal

e. Monthly administration fee

g. ATM cash withdrawal of R850 at own bank’s ATM

R17,50 + 250 x 0.009=R19.75

R12,65???

R2,00???

R3,10 + R350 x 0.009 = R6,25Mathematical Literacy 16Future Managers

B Mokoena

08 05 23

250 80

250 80

Benni MokoenaB Mokoena


NCV 2 Mathematical Literacy Hands-On Training Solution to Summative Assessment 2

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