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

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Solutions to Summative Assessment 2 from the accompanying textbook NCV 2 Mathematical Literacy Hands-On Training published by Future Managers Pty Ltd (www.futuremanagers.net)

Solutions to Summative Assessment 2 from the accompanying textbook NCV 2 Mathematical Literacy Hands-On Training published by Future Managers Pty Ltd (www.futuremanagers.net)

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  • 1. Mathematical Literacy 2 Module 2 Answers to Assessment Questions Mathematical Literacy Future Managers 1
  • 2. Self Assessment Pg 56 1. 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%. Mathematical Literacy Future Managers 2
  • 3. 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 Mathematical Literacy Future Managers 3
  • 4. • Calculate his net income i.e. after deductions. 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 • Calculate the amount he has left after all his expenses have been subtracted from his net income. Income after expenses = R3240 - R3572 = - R388 Mathematical Literacy Future Managers 4
  • 5. 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 Future Managers 5
  • 6. 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 x 650 Crèche fees for Lily x 350 Food x 950 Taxi fare x 300 Telephone x 180 Entertainment x 100 Money saved x 250 Clothes x 150 Lotto x 80 Cigarettes x 100 Total (a) R3110 Mathematical Literacy Future Managers 6
  • 7. • 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 Mathematical Literacy Future Managers 7
  • 8. Expense Item Fixed or Var Amount % of Income Rental amount of room x 650 19,4 Crèche fees for Lily x 350 10,4 Food x 950 28,4 Taxi fare x 300 9,0 Telephone x 180 5,4 Entertainment x 100 3,0 Money saved x 250 7,5 Clothes x 150 4,5 Lotto x 80 2,4 Cigarettes x 100 3,0 Total (a) R3110 Mathematical Literacy Future Managers 8
  • 9. Rosie's Expenditure Cigarettes Lotto 3% 3% Clothes Rental 5% 21% Money saved 8% Entertainment 3% Phone 6% Creche 11% Taxi 10% Food 30% Mathematical Literacy Future Managers 9
  • 10. ` • Calculate how much money Rosie has left after deducting all her expenses for the month. Money remaining = Total income – Total expenditure = R3 350 – R3 110 = R240 • What would you advise Rosie to do with any remaining money? 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 Future Managers 10
  • 11. Self Assessment Pg 61 From 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 27,15 2050 0 0 Insurance 400 5,29 400 0 0 W+E 265 3,51 300 +35 +13,2% Phone 480 6,3 500 +20 +4,2% Transport 300 3,97 350 +50 +16,7% School 265 3,5 265 0 0 Clothes 250 3,3 100 -150 -60% Medical 146 1,93 200 +54 +37% Food 2850 37,72 3500 +650 +52,6 Savings 250 3,3 200 -50 -20% Entertain 300 3,97 (c)R0 -300 -100% Total (a) R7556 100 (b) R7865 Mathematical Literacy Future Managers 11
  • 12. Summative Assessment TV Licences Private Bag x 60 Mr. Benni Mokoena Auckland Park 2006 License renewal period: Walter Sisulu Drive 2008/08/01-2009/07/31 Boshabelo Bloemfontein Closing balance: 25,80 Date: Particulars: Amount: 225,00 2007/07/20 Private Household Balance due: 250,80 120+ days 90 days 60 days 30 days Current Balance 25,80 225,80 250,80 Mathematical Literacy Future Managers 12
  • 13. Summative Assessment On the previous slide is Benni Mokoena’s TV license that he had to buy when he bought his TV. 2. Answer the questions below 3. Complete a direct deposit slip from a bank to clear the account Questions: 5. What does “closing balance” mean? The balance at the end of the period 8. What does “120 days or more” mean? It means debt that is over 120 days old Mathematical Literacy Future Managers 13
  • 14. • What is the total amount you have to pay? It means debt that is over 120 days old • What is the due date of payment? 20 July 2007 Mathematical Literacy Future Managers 14
  • 15. 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? R25,08 d. What type of expense is a TV license – fixed or variable? Fixed Mathematical Literacy Future Managers 15
  • 16. 1. From Wonder Bank’s table of banking costs – Calculate the following: a. Withdrawal over the counter of R250 R17,50 + 250 x 0.009=R19.75 c. ATM Cash withdrawal of R1 050 at a SASWITCH terminal R12,65??? e. Monthly administration fee R2,00??? g. ATM cash withdrawal of R850 at own bank’s ATM R3,10 + R350 x 0.009 = R6,25 Mathematical Literacy Future Managers 16
  • 17. 08 05 23 B Mokoena 250 80 250 80 Benni Mokoena B Mokoena Mathematical Literacy Future Managers 17