Name.

Nkosana Minenhle

Centre name. Kalope Secondary

Level. Form 4 (private)

Subject. Mathematics

CALA component. D

Topic Financial Mathematics

Subtopic. Consumer arithmetic

Skills. Financial accuracy, decision making, calculating

Duration. Two weeks

BACKGROUND

There is an increase in the cost of living experienced by families in Hwange Town

ACTIVITY

Identify a family and calculate their cost of living and making recommendations

IDENTIFIED FAMILY

The identified family is the Zhou family of DRC area at Empumalanga Township in Hwange

COST OF COMMODITIES

Commodity Quantity Cost /unit in US$ Total cost in US$

Mealie meal 20kg $12 $12.00

Sugar 4 kg $2.50/2kg $5.00

Meat 5kg $6.00/kg $30.00

Salt 1kg $1.00/kg $1.00

Cooking oil 2 litres $6.00/2litree $6.0

Bathing soap 4 $0.50/bulb $2.00

Washing powder 4kg $4.00/2kg $8.00

Flour 4 kg $2.50/2kg $2.50

TOTAL $66.50

COST OF COMMODITIES EXPRESSED IN MULTIPLE CURRENCIES

CURRENCY US$ Official exchange rate Black market rate

COST OF COMMODITIES $66.50 450 x $66.50= 700 x $66.50=ZWL46

ZWL29925 550

COST OF UTILITIES

UTILITIES COST (in official COST( in US$)

exchange rate)

Electricity $10 000 ZWL10000/450=2

2.22

Water $3000 ZWL3000/450=6.6

7

The family gets its income through MrZhou's monthly who is employed as a Safe guard at ZPC. His
average monthly income is ZWL45000

INCOME-EXPENDITURE COMPARISON

CURRENCY US$ OFFICIAL EXCHANGE BLACK MARKET RATE

RATE

FAMILY INCOME 45000/450=US$100 45000/70=US$64.29

Mr Zhou's monthly salary is ZWL45000 whereas his family expenditure reaches up to ZWL 46550 in black
market rate. This means his family has challenges with making ends meet.

RECOMMENDATIONS

Mr Zhou should do other income generating activities to supplement salary

His employer can also increase his salary to allow him more buying power

Where possible, family may cut on expenditure