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

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

2. Case Study: Benni Mokoena
1. Why do you think Benni agreed to pay
R239.00 per month for the TV?
He agreed to pay, in order to have the TV
now, and pay later
5. Do you think that Benni should pay for the TV,
even though it was destroyed in the fire.
•He signed a contract saying he would
•The TV was in his possession
Case studies module 2 Future Managers 2

3. 1. How much would Benni have paid if he had
stuck to his monthly instalments?
Total payment = R239 x 24 = R5 736
5. How much does a TV with the same
specifications that Benni bought cost, if it is
bought with cash?
Approximately R2 500
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4. 5. What would you ask for when buying for cash?
A cash discount
4. Did Benni have spare money to pay for
unforeseen expenses?
No
6. What other unforeseen events can you think of
that could have similar results?
Theft, floods.
Case studies module 2 Future Managers 4

5. Quotation – Easy Buy
Customer name Mr Benni Mokoena
Address: Walter Sisulu Drive, Botshabelo
Product 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 R20.59 24 months R494.10
costs
Monthly discounted service fee R11.40 24 months R273.60
Total amount repayable R5732.60
Monthly repayments 23 months R239
Final payment 1 month R235.61
Case studies module 2 Future Managers 5

6. 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!
2. 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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7. 1. What advice would you give Benni?
Buy on cash as much as possible, and save
for items that you want.
4. What can Benni do to stop being blacklisted?
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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8. 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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9. Current Account
Mr. Benni Mokoena
Wonder Bank Ltd Bank statement from:
Walter Sisulu Drive 01/07/08 to 31/07/08
Boshabelo
Bloemfontein
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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10. Case studies module 2 Future Managers 10

11. Case studies module 2 Future Managers 11

12. Case studies module 2 Future Managers 12

13. Case studies module 2 Future Managers 13

14. Quotation – Easy Buy
Customer name Mr Benni Mokoena
Address: Walter Sisulu Drive, Botshabelo
Product 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 R20.59 24 months R494.10
costs
Monthly discounted service fee R11.40 24 months R273.60
Total amount repayable R5732.60
Monthly repayments 23 months R239
Final payment 1 month R235.61
Case studies module 2 Future Managers 14

15. TV Licences Private Bag x 60
Auckland Park 2006
Mr. Benni Mokoena 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
Case studies module 2 Future Managers 15

16. Case Study: The Mokoena Family
1.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?
Benni stopped paying for the TV after it was
destroyed.
Case studies module 2 Future Managers 16

17. Case Study: The Mokoena Family
2.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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18. Case Study: The Mokoena Family
1. 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)
Case studies module 2 Future Managers 18

19. Case Study: The Mokoena Family
1. 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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20. Case Study: The Mokoena Family
1. 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.
08 03 09
6 0 1 7 0 0 1 0 4
Dr Williams
09/03/08
UR Name
UR Name
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21. Case Study: The Mokoena Family
6.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.
08/07/2008
Pick & Pay
Seven hundred and fifty eight
758.30
rand and 30/100
B Mokoena
Case studies module 2 Future Managers 21

22. Case Study: The Mokoena Family
1. 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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23. Case Study: The Mokoena Family
1. 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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