MATHEMATICAL LITERACY

PAPER 1

YEAR-END EXAMINATION REVISION LESSON

PRESENTER: MS MALEDU

“Let’s Grow North West Together”

 PAPER 1 TOPICS

MARKS = 150TIME ALLOCATION = 3 HOURS

FINANCE DATA HANDLING PROBABILITY
 Financial Documents  Data Handling Process  Probability of simple events
 Taxation  Developing questions  Relative frequency and
 Tariff systems  Collecting data theoretical probability
 Income, expenditures, profit /  Classifying and Organising  Tree diagrams
loss and budget Data  Two-way tables
 Cost and selling Price  Summarising data
 Interest  Representing data
 Loans  Interpret and analysing data
 Banking  Percentiles and Quartiles
 Inflation
 Exchange rates
 Structure of the Paper
Weighting of Topics Finance 60% (± 5)
Data Handling 35% (± 5)
Probability 5%
Structure and scope of content Question 1:
and / or skills 30 marks ± 5 marks
Level 1 questions on Finance and Data Handling

Question 2: Finance

Question 3: Data Handling

Question 4: Integrated context on Finance and Data Handling

Question 5: Finance, Data Handling or Integrated question

The question paper may have 4 or 5 questions

 DATA
HANDLING
 Data Handling Process
Pose a
question

Collect
data
Represent Analyse and
Interpret data
data

Organise
data
Summarise
data
 DEVELOP A QUESTION
• The question must be clear and free of biases and
ambiguity.

• Data bias occurs when an information set is inaccurate and

fails to represent the entire population.

• Ambiguity means the phrasing is unclear, vague, or open to

multiple interpretations.
 Data collection Methods & Instruments
• Population – refers to the entire group that you want to draw conclusions
• Interview about.

• Observations
• Sample – is a representative part / piece of the population.
• Surveys
• Experiment
• Questionnaire
• Social media
• Checklist
• Data base
• Recording sheet
 Classifying data and Organising data

Categorical
(Qualitative)
Discrete
DATA (Data obtained from
counting)
Numerical
(Quantitative) Continuous
(Data obtained from
measurement)
 Arranging Data

• Ascending order – from smallest to biggest

• Descending order – from biggest to smallest

Use the information from the table below on the heights of ALL the players to complete the frequency table below.

7s RUGBY TEAM : PLAYER INFORMATION – Team A

Age (years) Height (m) Mass (kg) BMI
Player 1 16 1,85 62 18,16
Player 2 18 1,75 72 23,51
Height (in m) Tally Frequency
Player 3 17 1,65 65 23,9
1, 5 – 1, 62
Player 4 18 1,7 72 24, 9
1, 63 – 1, 75
Player 5 16 1,62 68 24,98
1, 76 – 1, 85
Player 6 15 1,56 66 27,1
1, 86 and taller
Player 7 16 1,5 65 28,89
7s RUGBY TEAM : PLAYER INFORMATION – Team B
Age (years) Height (m) Mass (kg) BMI
Player 1 17 1,58 63 25,2
Player 2 18 1, 89 69 19,32
Player 3 16 1,55 53 22,1
Player 4 17 1,66 81 BMI
Player 5 18 1, 96 80 20,8
Player 6 17 1, 86 74 21, 39
Player 7 17 1, 85 63 17, 82
Ascending order
– 17,4 – 6,7 – 1,1 10,1 42,7 90,1 122,2
 Summarising data

Mean/Average
(Sum of values divided by the Range
number of values)
(Maximum value –
Minimum value)

Measures of Spread /
Median Dispersion
Measures of Central
Tendency (Middle value in an
arranged data set)
Inter-quartile Range
(Q3 – Q1)
Mode
(The most appearing value
in a data set)
 Measures of Central Tendency
65 55 89 56 35 14 56 55 87 45 92
 Measures of Central Tendency
ODD Numbered Data Set
65 55 89 56 35 14 56 55 87 45 92

14 35 45 55 55 56 56 65 87 89 92

Median = 56

EVEN Numbered Data Set

14 35 45 55 55 56 56 65 87 89
 Measures of Central Tendency

14 35 45 55 55 56 56 65 87 89 92
Mode = 55 and 56

14 35 45 55 55 56 56 56 87 89 92
Mode = 56

14 35 45 50 55 56 58 59 87 89 92
Mode = No mode
 Measures of Spread / Dispersion

14 35 45 55 55 56 56 65 87 89 92

Range = 92 – 14

= 78
 INTER-QUARTILE RANGE
48 58 48 62 40 58 57 31 60 55 66 58 56
Q1 Q2 Q3

31 40 48 48 55 56 57 58 58 58 60 62 66

IQR = Q3 – Q1
Q2 = 57
= 59 – 48
= 11
 INTER-QUARTILE RANGE

Q1 Q2 Q3

31 40 48 48 55 56 57 58 58 58 60 62

IQR = Q3 – Q1
= 58 – 48
= 10
 INTER-QUARTILE RANGE

Q1 Q2 Q3

31 40 48 48 55 56 57

IQR = Q3 – Q1
= 56 – 40
= 16
IQR = Q3 – Q1 Range = Max value – Min value
= 28 – 22 = 31 – 18
=6 = 13
 (EC/JUNE2021)

C = 222 + 103 + 95 + 154 + 123 + 75

A = 222 – 121
= 772
= 101
B = 123 – 59
C = 406 + 101 + 95+ 78 + 59 +33
= 64
= 772
B = 406 – 121 – 103 – 76 – 42
= 64
 64
101
772

Trend: The number of male learners are decreasing from Grade 8 to Grade 12

Reason: Male learners drop out of school.

Male learners fail the grades.

 64
101
772

 22

Statement is not valid

 64
101
772

 29%
KE A LEBOGA!
THANK YOU!
1.1.1 State the value of a single green note.

Answer: 1 Million
1.1 State whether the data in
the table is an example of
discrete or continuous data.
Give a reason for your answer.

Answer:
This data is discrete as they are
countable.
1.2 Use the table to describe
the trend in SA's GDP for the
period 2011 to 2019.

Answer:
• The SA GDP decreased
from 2011 to 2016.
• Increased from 2016 to
2018.
• Started decreasing from
2018 to 2020.
The monthly salaries of the 16 people who work in the technical department are listed in the
table below. The currency is Rand.
TABLE 1: The monthly salaries of 16 people
34 720 17 482 9 800 A

13 550 21 650 11 200 17 482

16 245 14 837 13 420 10 000
8 400 12 996 B 15 400
1.1 A represents the lowest salary. B is lower than R32 000. The range of this salary set is
R28 020. Determine the value of A.

Range = Highest – Lowest

28 020 = 34 720 – A
A = 34 720 – 28 020
A = 3 300
 TABLE 1: The monthly salaries of 16 people
34 720 17 482 9 800 A 3 300

13 550 21 650 11 200 17 482

16 245 14 837 13 420 10 000
8 400 12 996 B 15 400
1.2 The mean salary is R14 702. Calculate the value of B. Show all steps.

14 702
14 702 x 16
235 232 = 220 482 + B
235 232 – 220 482 = B
14 750 = B
The monthly salaries of the 16 people who work in the technical department are listed in the
table below. The currency is Rand.
TABLE 1: The monthly salaries of 16 people
34 720 17 482 9 800 A

13 550 21 650 11 200 17 482

16 245 14 837 13 420 10 000
8 400
1.3 Determine the median salary. 12 996 B 15 400

Arranged data set

3300 8400 9800 10000 11200 12996 13420 13550 14750 14837 15400 16245 17482
17482 21650 34720
The monthly salaries of the 16 people who work in the technical department are listed in the
table below. The currency is Rand.
TABLE 1: The monthly salaries of 16 people
34 720 17 482 9 800 A

13 550 21 650 11 200 17 482

16 245 14 837 13 420 10 000
8 400 12 996 B 15 400
1.4 Which measure of central tendency gives a better summary of the salaries in the technical
department? Substantiate your answer.

o The Median.
o The Mean is affected by the outlier of R34 720.
 Finding the missing value
• The box-and-whisker diagrams representing the percentage achieved in the exam of
the two Mathematical Literacy Grade 12 classes consisting of 26 learners each are
shown below:

Determine the missing value X, by reading the

median value from the box-and-whisker plot.
 Finding the missing value
•
66,7
The box-and-whisker diagrams representing the percentage achieved in the exam of the
two Mathematical Literacy Grade 12 classes consisting of 26 learners each are shown
below:

Calculate the missing value H, if the mean

percentage mark of Class A is 57,1

57,1 x 26 = 1 410,9 + H
1 484,6 = 1 410,9 + H
1 484,6 – 1 410,9 = H
73,7 = H
 Finding the missing value
66,7 73,7
• The box-and-whisker diagrams
representing the percentage achieved
in the exam of the two Mathematical
Literacy Grade 12 classes consisting of
26 learners each are shown below:
Compare the Inter Quartile Ranges (IQR) of
Class A and Class B.

IQR Class A = Q3 – Q1
= 80 – 30
= 50

IQR Class B = Q3 – Q1
= 70 – 20
= 50
The IQR for Class A and Class B are
the same.
 Interpreting the Box-and-Whisker Plot
• The box-and-whisker diagrams representing the percentage achieved in the exam of the
two Mathematical Literacy Grade 12 classes consisting of 26 learners each are shown
below:

• What percentage of learners scored between

20 and 30 in Class A?

Answer = 25%

• Determine the number of learners who

scored marks that are less than 3rd quartile.
 INTER-QUARTILE RANGE
The interquartile range for the top 10 vehicles sold in South Africa is 7 669 and the value
of Quartile 1 is 11 408.

Calculate the value of the upper quartile.

IQR = Q3 – Q1

7 669 = Q3 – 11 408

7 669 + 11 408 = Q3

19 077 = Q3
KNOWING YOUR GRAPHS

BAR GRAPH
KNOWING YOUR GRAPHS

HISTOGRAM
 REPRESENTING DATA
DOUBLE BAR GRAPH HORIZONTAL BAR GRAPH
 KNOWING YOUR GRAPHS
STACKED BAR GRAPH
CAR SALES RECORD
120

100

80

60

40

20

0
Toyota Hyundai Ford Isuzu
Passenger cars New commercial vehicles Medium commercial vehicles
REPRESENTING DATA
BROKEN LINE GRAPH
REPRESENTING DATA
SCATTER PLOT GRAPH
 REPRESENTING DATA
PIE CHART
Blood group distribution among babies born at Green Park
Hospital in 2021

Type A
16%

Type O
Type B 48%
20%

Type AB
16%
 Box and Whisker Plot

Q1 Q2 Q3
Lower quartile Median Upper quartile
Minimum Maximum

Inter-quartile Range
Range
 SCATTER PLOT

Range = Highest value – Lowest value

= 81 – 15

= 66
 SCATTER PLOT

• Learner H

• The marks for both Task 1 and Task 2 are much lower compared to the other
learners.
SCATTER PLOT
SCATTER PLOT
 GROWTH CHART

“Let’s Grow North West Together”

 VAT – Value Added Tax
• VAT – Value Added Tax
• Charged at a Standard Rate of 15% in South Africa

• Zero-rated items – Things that you do not pay VAT on. E.g. Basic food stuffs (brown
bread, maize meal, samp, mealie rice, rice, vegetables, fruit, vegetable oil, milk,
eggs, etc), paraffin, goods that are subject to fuel levy (petrol and diesel)

• VAT exclusive price – The price before VAT is added = 100%

• VAT inclusive price – The price after VAT is added = 115%
• VAT Amount – The amount that is added to the VAT exclusive price – Calculated at
15% of the VAT exclusive price.
 VAT Calculations
VAT I n c l u s i v e = VAT E x c l u s i v e + VAT A m o u n t
1 1 5 = 1 0 0 + 1 5

VAT EXCLUSIVE = 100 VAT EXCLUSIVE = 100 VAT INCLUSIVE = 115

VAT INCLUSIVE = 115 VAT AMOUNT = 15 VAT AMOUNT = 15

Mrs Jones bought a bomber jacket on 24 November 2023, on Black Friday. The cost of the
bomber jacket is shown below.

BOYS BOMBER JACKET

Was: R499,00 (VAT incl.)
Now: R336,75

Determine the percentage discount that was offered on the bomber jacket.
% discount =
=
= 32,515
 32,52%
Mrs Jones bought a bomber jacket on 24 November 2023, on Black Friday. The cost of the
bomber jacket is shown below.

BOYS BOMBER JACKET

Was: R499,00 (VAT incl.)
Now: R336,75

Determine the VAT exclusive amount of the original bomber jacket price.
VAT exclusive = VAT exclusive =
= R433,913 = R433,913
 R433,91  R433,91
VAT amount =

= R89,95
Calculate the VAT amount included in the Selling
price of the Octolite Carry on.

VAT amount =
= R325,9565217
 R325,96

VAT exclusive =
= R2 173,04
VAT amount = R2 499 – R2 173,04
= R325,96
Calculate the VAT inclusive amount for the American
Tourister.
VAT inclusive =

= R2 298,85

VAT inclusive =

= R2 298,85
 Income Tax
• Annual Taxable Income = Annual Gross Income – Tax Deductions
Tax Deductions examples
• Pension Fund
• Provident Fund
• Retirement Annuity
• Donations to qualifying public benefit organisations

• Monthly Taxable Income  Multiply by 12 to calculate the Annual Taxable Income

• Rebates  Discount given to tax payers

• Medical Tax Credits  A deduction off your tax payable.

• Tax Threshold  The amount of income below which you do not pay any income tax.
 The amount of income above which you start pay any income tax.
STEPS TO CALCULATE TAX PAYABLE (INCOME TAX)
Annual Taxable Income
• Taxable income = Gross Income – Tax deductions (Pension fund, Retirement
annuities, Donations)
• If given Monthly Taxable Income – Multiply by 12

Determine the correct tax bracket

•Calculate Tax payable before Rebates and Medical Tax Credits

Medical Tax Credits

Determine the number of people
Remember to calculate the ANNUAL Amount

Tax payable after rebates and medical aid credits

Subtract ALL applicable rebates and Medical Tax Credits

Monthly tax payable

•Divide your answer by 12
 Income Tax

Show how the basic amount of R73 726 in Bracket 3 was calculated.

= 40 680 + 26% x (353 100 – 226 000)

= 40 680 + 0,26 x R127 100
= 40 680 + 33 046
= R73 726
 Tax Threshold
The amount above which income tax becomes payable.
Tax Rebate 2023 Tax Threshold 2023
Primary R16 425 Under 65 R91 250
Secondary (65 and older) R9 000 65 and older R141 250
Tertiary (75 and older) R2 997 75 and older R157 900

TAX THRESHOLD TAX THRESHOLD

Show with calculations that a 65 year- Show with calculations that the tax
old person earning R91 250 does not threshold for a person aged between 65
qualify to pay tax. and older is correct.
Tax rebates = R16 425 + R9 000
Tax payable
= R25 425
= x R91 250
Tax threshold = x R25 425
= R16 425 – R16 425
= R141 250
= R0
 Taxable Income Calculations
• Mrs Venter is a 53 years old teacher and has 32 years of teaching experience. Her monthly basic salary is
R26 932,25 and has a housing allowance of R1 578,37 per month. She contributes 7,5% of the basic
salary towards her pension fund.

1. Calculate Mrs Venter’s Annual Taxable Income.

Taxable income = Gross income – Tax Deductions

Tax deductions
• Gross income = Basic salary + Allowances
• Annual pension fund = (7,5% x R26 932,25) x 12
= R26 932,25 + R1 578,37
= R2 019,91875
= R28 510,62
= R2 019,92 x 12
= R24 239,04
• Annual gross salary = R28 510,62 x 12
= R342 127,44
• Taxable income = Gross income – Tax Deductions
= R342 127,44 – R24 239,04
= R317 888,40
 Taxable Income Calculations
• Mrs Venter is a 53 years old teacher and has 32 years of teaching experience. Her monthly basic
salary is R26 932,25 and has a housing allowance of R1 578,37 per month. She contributes 7,5%
of the basic salary towards her pension fund. She gets the bonus (13th cheque) which is equal to the
monthly basic salary. The tax for the bonus is spread equally over twelve months.

• Determine Mrs Venter’s annual taxable income including the bonus.

NOTE: Annual taxable income = (Annual gross salary – annual pension fund contribution) + bonus

• Annual taxable income = (R28 510,62 x 12) – (R2 019,92 x 12) + R28 375,00

= R342 127,44 – R24 239,04 + R26 932,25

= R344 820,65
Mr. Mokgothu, a 67-year-old resident at Madikwe, earned a monthly taxable income of R35
357,00 during the 2021/22 tax year.

During this time, Mr. Mokgothu was a member of a medical fund for himself and his three children.

Determine Mr. Mokgothu’s annual taxable income.

Annual Taxable Income = R35 357,00 x 12

= R424 284,00
• Mr. Mokgothu, a 67-year-old resident at Madikwe, earned a monthly taxable income of R35 357,00
during the 2021/22 tax year.

• During this time, Mr. Mokgothu was a member of a medical fund for himself and his three children.
• Table 1 below shows the monthly medical tax credits for the 2021/22 tax year.

Show with calculations that Mr. Mokgothu will

MEDICAL TAX CREDITS PER receive R13 344 medical tax credits for the
MONTH
2021/22 tax year.
Main member R332
First dependent R332 Medical tax credits
Each additional dependent R224 = R332 + R332 + R224 + R224
= R1 112 x 12
= R13 344
• Mr. Mokgothu, a 67-year-old resident at Madikwe, earned a monthly taxable income of R35 357,00 during the 2021/22
tax year.
• During this time, Mr. Mokgothu was a member of a medical fund for himself and his three children.
• Table 1 below shows the tax table for the 2021/22 tax year.

• Calculate the amount of tax Mr. Mokgothu must

Tax Taxable Income
Tax Rate (R) pay for 2021/22 tax year.
bracket (R)
1 0 – 226 000 18% of taxable income
Annual taxable income = R35 357,00 x 12
40 680 + 26% of taxable
2 226 001 – 353 100 = R424 284,00
income more than 226 000
73 726 + 31% of taxable
3 353 101 – 488 700 Annual tax = 73 726 + 31% x (424 284 – 353 100)
income more than 353 100
= 73 726 + 0,31 x 71 184
115 762 + 36% of taxable
4 488 701 – 641 400 = 73 726 + 22 067,04
income more than 488 700
= 95 793,04
Tax rebate 2022
Primary R15 714 Tax payable after rebates and medical tax credits
= 95 793,04 – 15 714 – 8 613 – 13 344
Secondary (65 – 74 years old) R8 613
= 58 122,04
Tertiary (75 and older) R2 871
 INTEREST
TERMINOLOGY
• Principal amount – the initial size of a loan; it can also mean the amount still owed on a
loan.
• Interest – a fee paid for the use of another party’s money.
• Interest rate - this is the % rate of interest that will be charged on your loan amount, i.e.
a percentage value of the original loan amount.
• Simple interest - Interest charged on the original amount due only, resulting in the same
fee every time.
• Compound interest - interest charged on an amount due, but including interest charges
to date.

FORMULAS
• Total amount = Principal amount + Interest
• Interest = Principal amount x Interest rate x Term
• Interest = Total amount – Principal amount
The FNB Business account pays 2,4% interest per annum. The interest is compounded
monthly.

(a) Calculate the monthly interest rate.

Monthly interest rate =

 Compounding Periods
Annually / Yearly / Per annum Monthly
 1 calculation for each year  12 calculations in a year
 i.e. if its for 3 years, there will be o Multiply the Interest Rate by
3 calculations OR
o Divide the Interest Rate by 12
Half-yearly / Semi-annually / Bi-
annually Every 7 months
 2 calculations in a year  Divide the period (in months) by
o Multiply the Interest Rate by 7 to determine the number of
OR calculations
o Divide the Interest Rate by 2 o Multiply the Interest Rate by

Quarterly
 4 calculations in a year Weekly
o Multiply the Interest Rate by
o Multiply the Interest Rate by
Daily
OR o Multiply the Interest Rate by
o Divide the Interest Rate by 4
 COMPOUND INTEREST
Niel invests R15 000 of his total profit in a bank which offers him the following interest rates:

6,25% interest compounded yearly for the first year and an interest rate of 6,95% compounded
yearly for the second year.

Calculate the total interest that Niel’s investment would earn at the end of the second year. (6)
Year 1 = R15 000 + (R15 000 x Interest = R17 045,16 – R15 000
= R15 000 + R937,50 = R2 045,16
=R15 937,50

Year 2 = R15 937,50 + (R15 937,50 x

= R15 937,50 + R1 107,65625
=R17 045,15625
 R17 045,16
 SIMPLE INTEREST
Lerato applies for a personal loan of R23 000. She is charged 24,75% simple interest per year
and will repay the loan over two years in equal monthly instalments.

1.1 Calculate the amount of interest Lerato is charged.

Interest = R23 000 x

= R5 692,50
 SIMPLE INTEREST
Lerato applies for a personal loan of R23 000. She is charged 24,75% simple interest per year
and will repay the loan over two years in equal monthly instalments.

1.2 Calculate the total amount of Lerato's loan.

Total amount = R23 000 + R5 692,50

= R28 692,50
 SIMPLE INTEREST
Lerato applies for a personal loan of R23 000. She is charged 24,75% simple interest per year
and will repay the loan over two years in equal monthly instalments.

1.3 Calculate Lerato's total monthly repayment amount.

Monthly repayment = R28 692,50 ÷ 24

= R1 195,520833

 R1 195,52
3. Michael has invested R1,25 million. The money was invested as follows:
• Twenty-seven (27) months investment period.
• 6% interest per annum, compounded annually.

• Show with calculations the amount of interest he will earn after the 27 months.

Term 27 months = 2 years 3 months 3 months = R1 404 500 + (R1 404 500 x
R1,25 million x 1 000 000 = R1 250 000
= R1 404 500 + R21 067,50
= R1 425 567,50
= R1 250 000 + R75 000
= R1 325 000

Year 2 = R1 325 000 + (R1 325 000 x Interest = R1 425 567,50 – R1 250 000,00
= R1 325 000 + R79 500 = R175 567,50
= R1 404 500
 HIRE PURCHASE
Marshall needs to buy a vehicle to drive to work and back daily. He would like to buy a small
second-hand car from ABS Dealership that offers finance on vehicles. He is interested in a
Hyundai (2013 model) that is available at R79 000 cash. He can buy the car on credit, where he
will be paying a deposit of R10 000 and 60 monthly instalments of R1 985. This amount does not
include insurance for the vehicle.

1. What is the total amount that Marshall will repay for this vehicle if he decides to buy it on credit?

Total repayment = Deposit + Monthly instalments

= R10 000 + (R1 985 x 60)
= R10 000 + R119 100
= R129 100

GP 23 P1 PRE
 HIRE PURCHASE
Marshall needs to buy a vehicle to drive to work and back daily. He would like to buy a small
second-hand car from ABS Dealership that offers finance on vehicles. He is interested in a
Hyundai (2013 model) that is available at R79 000 cash. He can buy the car on credit, where he
will be paying a deposit of R10 000 and 60 monthly instalments of R1 985. This amount does not
include insurance for the vehicle.

2. Determine the deposit as a percentage of the cash price. Round off your answer to ONE decimal
place.

Deposit % =
= 12,658
 12,7%

GP 23 P1 PRE
 HIRE PURCHASE
Marshall needs to buy a vehicle to drive to work and back daily. He would like to buy a small
second-hand car from ABS Dealership that offers finance on vehicles. He is interested in a
Hyundai (2013 model) that is available at R79 000 cash. He can buy the car on credit, where he
will be paying a deposit of R10 000 and 60 monthly instalments of R1 985. This amount does not
include insurance for the vehicle.

3. Marshall claims that he could save more than R40 000 if he buys the car for cash compared to
buying it on credit. Evaluate his statement by means of calculations to determine whether he is
correct.

Cash = R79 000 Amount saved = R129 100 - R79 000

Credit = R129 100 = R50 100

His statement is correct.
GP 23 P1 PREP
VAT Inclusive

= R51 703,448

 R51 700
Deposit =

Loan amount

= R51 700 – R5 170

= R46 530
 Total cost of the loan

= R46 530 + (R46 530 x

= R46 530 + R11 167,20

= R57 697,20

Calculate the total cost of the loan if this loadshedding kit was
purchased on hire purchase.
 Monthly instalment

= R57 697,20 ÷ 36

= R1 602,70

Calculate the monthly instalment that Francois Nel

would pay if this kit was purchased on hire purchase.
 Amount saved

= R57 697,20 – R46 530

= R11 167,20

OR

= R57 697,20 + R5 170 – R51 700

Calculate the amount Francois Nel would have
saved if he purchased the kit for cash instead of = R11 167,20
the hire purchase agreement.
 Inflation
• Inflation – the general increase of prices of goods and services over a period of time.

• Inflation measures how much more expensive a set of goods and services has become over a

certain period.

• Inflation rate – the percentage at which prices increase over time, resulting in a fall in the

purchasing value of money.

• Calculations

 New price / Old price

 Inflation amount

 Inflation rate (Percentage change)

 INFLATION
New Amount = Old Amount + Inflation Amount
Bontle saw the advertisement below of a Renault Duster 1.6. Determine how much the car would
cost in a year if the average inflation rate is 6,4%.
SOLUTION

New price = Old amount + Inflation amount

= R189 995 + ( x R189 995)
= R189 995 + R12 159,70
= R202 157,70
 INFLATION

OLD PRICE + INFLATION AMOUNT = NEW PRICE

100 + 4,75 = 104,75

100
𝑶𝑳𝑫 𝑷𝑹𝑰𝑪𝑬 = × 𝑅𝑎𝑛𝑑 𝑝𝑟𝑜𝑣𝑖𝑑𝑒𝑑
104 , 75

104 ,75
𝑵𝑬𝑾 𝑷𝑹𝑰𝑪𝑬= × 𝑅𝑎𝑛𝑑 𝑝𝑟𝑜𝑣𝑖𝑑𝑒𝑑
100
 INFLATION
New Amount = Old Amount + Inflation Amount
Bontle saw the advertisement below of a Renault Duster 1.6. Determine how much the car would
cost in a year if the average inflation rate is 6,4%.

New price = x R189 995

= R202 157,70
The inflation rate in America for 2021 was 7% and in 2020 it was 1,4%. The price of a Ford F-series
vehicle in 2022 is $32 332.

It is stated that the price of the Ford F-series vehicle in 2020 was more than $29 800.

Verify, showing ALL calculations, whether this statement is valid.

The statement is not valid.

 DEFLATION
New Amount = Old Amount – Inflation Amount
Bontle saw the advertisement below of a Renault Duster 1.6. Determine how much the car
would cost in a year if the average inflation rate is projected to be – 6,4%.

New = 100 – 6,4

= 93,6
New price = x R189 995
= R177 835,32
Show with detailed calculations how the percentage change of – 0,58 for EC was determined.
 2021 % (NEW) = 100 – 4,08
Calculate the value of A, the number of children in GP in 2020.

= 95,92
Write down the province with the third-highest number of children in 2021.

Eastern Cape (EC)

1. State the difference between
a budget and an income and
expenditure statement.

A budget is used to plan

future income and
expenditure. While an income
and expenditure statement
contains the actual amounts
for the year/month.
2. An amount –R43,7 appears
with a minus sign in the
amount column. State the
importance of the minus sign.

The minus sign is showing

that the amount R43,70 is not
an income but rather a
payment.
3. Write out the value of the
main budget revenue
sources in full, without using
commas or words.

R1 588 000 000 000

4. Convert the given tax
revenue percentage to a
decimal number.

=
Income and Expenditure, profit/loss and budget
• TABLE 1 below shows the distribution of revenue among the different government
sectors in South Africa for the period 2013/14 to 2017/18. Some values have been
omitted.
• TABLE 1: DISTRIBUTION OF REVENUE AMONG THE DIFFERENT
GOVERNMENT SECTORS FOR THE PERIOD 2015/16 TO 2017/18

1. Calculate the missing value A, the

provincial allocation for 2016/17.

A
A = (R1 161,2 – R557,5 – R103,3) billion
= R500,4 billion
1. Calculate the revenue allocated to the local government sector for the period 2017/18 if the
distribution of revenue among the different sectors was done according to the following ratio:
Local : Provincial : National = 1 : 4,784 : 5,246

2. Total ratio = 1 + 4,784 + 5,246

= 11,03

 R112,5 billion
 538,04
112,5

1. Calculate the revenue allocated to the national government sector for the period 2017/18 if
the distribution of revenue among the different sectors was done according to the following
ratio:
Local : Provincial : National = 1 : 4,784 : 5,246

 R590 billion
Determine the fee payable on a R970.00 withdrawal from TNM Bank’s ATM.
=
= R3,90 + R13,289
= R17,189
 R17,19
Determine the fee payable on a R970.00 withdrawal from ZZS Bank’s ATM

Number of R100 = Fee =

= 9,7 = R2,00 + R10
 10 = R12,00
Okuhle stated that there is no difference in charges for a debit order of R200.00 at ZZS Bank
and SOM Bank. Determine, showing all calculations, whether her statement is valid or not.

ZZS Bank = R5,00 Fee = R3,75 + R1,00 x 2

= R3,75 + R2
No. of R100 = R200 ÷ 2 = R5,75
=2
Her statement is not valid
 EXCHANGE RATE

R
 Exchange Rate
An EXCHANGE RATE is the price of one nation’s currency in terms of another
nation’s currency.
This means that it is a measure of the strength of one currency against another.

• On average, a YouTuber earns around SOLUTION

$0,018 for each view. Multiply to the side
ZAR USD
• Determine how much a YouTuber
will earn for 1 150 views in rands. 1 0,054 Divide up
0,018
• NOTE: 1ZAR = 0,054 USD
 Exchange Rate
An EXCHANGE RATE is the price of one nation’s currency in terms of another nation’s currency.

• The price of an iPhone 14 in America is $699. SOLUTION

Multiply to the side
• Convert the price of the iPhone to rands. USD ZAR
1 19,0262
• NOTE: 1 USD : 19,0262 ZAR Divide up
699
 Exchange Rate

• The current spot price of gold in South Africa is ZAR ZAR : USD
29 344.62/oz which is equivalent to USD 1 29 344,62 : 1 795,37
795.37/oz.
:
• Determine the exchange rate of 1 ZAR to USD.
1 : 0,06118
EXCHANGE RATE TABLE
 2nd Strongest
Japanese yen = Euro
Russian rouble : ZAR
6,97481 : 1

= 0,1433730811
 0,143373
Write down the exchange rate of Brazil Real to the USA dollar in the form of 1Real : $___

REAL : US$
5,64 : 1

1 : 0,1773049645
 18,272 ZAR = 1 US$
R235 000 = x

x=
= 12 861,20841
Dr K Xulu is a South African Psychiatrist who is in USA for research  12 861,21$
purpose. He budgeted amount of R235 000 for other cost since the
company cover all cost for flight and accommodation.

Determine how much is this amount worth in USA dollar.

Rio De Janeiro is one of the most visited cities in South OPTION 1
America – Brazil. Mr Reddy, a Durban business man and his R1,35 = 1 Pula
friend Mr Gibson from Botswana recently visited Brazil. The R560 000 = x
currency is exchanged before you travel to another country. x=
= 414 814,8148 Pula
Mr Reddy claims that it was advantageous to him to exchange
his R560 000 to Botswana Pula and then to Brazil Real. Below 1 Real = 2,40 Pula
is the graph that was downloaded by Mr Reddy. x = 414 814,8148 Pula
x=
BRAZIL REAL SOUTH AFRICAN RAND = 172 839,5062
1 Real R3,24  172 839,51 Real
BRAZIL REAL BOTSWANA PULA OPTION 2
1 Real 2,40 Pula
His claim is
1 Real = R3,24
x = R560 000
not correct.
BOTSWANA PULA SOUTH AFRICAN RAND
x=
1 Pula R1,35
= 172 839,5062
Verify showing ALL calculations if his claim is correct.  172 839,51 Real
1£ = R17,268
£ 1 = R17,268
£ 500 = x

Amount received = R8 634 – R259,02

= R8 374,98
 TARIFFS
A tariff is the cost per unit for services such as water, electricity, transport and telephone.
 Calculate the cost for 8 kl
sanitation in Cape Town.

0 – 4,2 4,2 x R16,03 R67,326

4,2 – 7,35 3,15 x R22,02 R69,363
7,35 – 8 0,65 x R30,92 R20,098

Total = R67,326 + R69,363 + R20,098

= R156,787
 R156,79
Electricity can be purchased from Eskom in two ways, prepaid and post-paid.
Below is an adapted, comparative table to answer the questions that follow.

If a household uses 286 kWh of electricity on the post-paid system, how much would they pay for
their electricity consumption, including VAT?
0 – 50 50 x 69,36 3 468 c VAT Inclusive = R227,256 x
50,1 – 286 236 x 81,60 19 257,6 c = R261,3444
Total = 3 468 + 19 257,6  R261,34
= 22 725,6 ÷ 100
= R227,256
Electricity can be purchased from Eskom in two ways, prepaid and post-paid.
Below is an adapted, comparative table to answer the questions that follow.

A household bought electricity for R720, including VAT, on the prepaid system. Determine how
much electricity they can use.
VAT Exclusive = Tariff = 70,855 ÷ 100
= R626,086 = R0,70855
» R626,09
Cost excluding Fixed cost No. of units = R426,09 ÷ R0,70855
= R626,09 – R200 = R426,09 = 601,35 units
“Let’s Grow North West Together”