EKURHULENI NORTH DISTRICT
Mathematical Literacy
Grade 12
Revision Book
Term 1
2023
Finance: Taxation and Tariffs
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The notes/content in this document were put together with the help of all learners and educators
that talk about challenges encountered when doing school visits, visiting SSIP walk in camps, visiting
SSIP camps or just do a pop in visit, as well as on our whatsapp group platform. Thank you for each
and everyone. I hope this document will help and guide you.
All learners must know the following action verbs:
NB…. Please ensure that these words are used when asking quick questions during class
Action verbs Meaning
Analyse Separate, examine and interpret
Calculate This means a numerical answer is required – in general, you should
show your working,
especially where two or more steps are involved
Classify Group things based on common characteristics
Compare Point out or show both similarities and differences between things,
concepts, or phenomena
Define Give a clear meaning
Describe State in words (using diagrams where appropriate) the main
points of a structure/process/ phenomenon/investigation
Determine To calculate something, or to discover the answer by examining
evidence
Differentiate Use differences to qualify categories
Discuss Consider all information and reach a conclusion
Explain Make clear; interpret and spell out
Identify Name the essential characteristics PAY SPECIAL ATTENTION
Label Identify on a diagram or drawing
List Write a list of items, with no additional detail
Mention Refer to relevant points
Name Give the name (proper noun) of something
State Write down information without discussion
Suggest Offer an explanation or a solution
Tabulate Draw a table and indicate the answers as direct pairs
Verify Do calculations and say whether a statement is correct or not. DO
NOT FORGET TO VERIFY YOUR ANSWER AFTER CALCULATIONS
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Terminology you must master before attempting any questions:
Finance:
Till slip A receipt which serves as proof of payment for goods purchased.
Account Record of transactions showing purchases bought on credit, interest charged,
Statement amount due, etc. that is sent out on a regular basis.
Household An account sent to a customer for services used by their household such as water,
account/bill electricity, etc.
Invoice A list of goods or services rendered, together with a statement of the amount due.
Opening The amount of money in the account at the beginning of the period.
balance
Closing The amount of money in the account at the end of the period.
balance
Amount due The amount of money that needs to be paid.
Debit Amount of money that is owed by the client due to the money being taken out of
the account and usually indicated by the abbreviation DR.
Debit balance The money that is still owed on the account.
Credit The money coming into a client’s account due to money paid into the account and
usually indicated by abbreviation CR.
Credit balance Surplus amount of money in the account.
Due date The date by which an account must be paid.
Unit Price The price per single item bought or service rendered.
VAT Value Added Tax: A percentage charge added to the purchase price of certain
goods and services and is a form of taxation determined by the government.
Payslip A record of information about remuneration.
Loan A loan is an agreed sum of money that is lent by a bank or moneylender (e.g.
personal loan or home loan).
Account A record of income and expenditure.
Balance This is the difference between debits and credits.
Tax A compulsory levy imposed on citizen’s earnings or purchases to fund the activities
of government.
PAYE (abbr.) Pay as you earn: tax taken off your earnings by your employer and sent to
the South African Revenue Service before you are paid (the balance).
Salary An amount of money paid for the work you do. (This is normally paid monthly.)
Net pay The amount an employee “takes home” after income tax has been deducted.
Wages A wage is an amount of money paid to an employee normally based on a fixed
number of hours worked per week.
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Tariff systems
Make sure you know the terminology for tariff systems off by heart
• Identifying different types of tariff systems and know how to approach each of them.
Municipal e.g.
Electricity,water,
sewage
Tariff Telephone e.g.
Banking tariff cell phone, fixed
System line
Transport e.g. Bus,
taxi,train
Municipal Tariff
Water Tariff
- Used to calculate the amount of water used during the month.
- Water usage is measured in kilolitres.
- It is based on a sliding scale. The more water you Use, the more money you pay.
The Different types of water tariff systems seem to confuse most of us, here are a few examples
on the different tariff systems that can be used. Your teacher will explain how to read each of the
following
Water usage in kilolitres Tariff (per kilolitre)
0 kl to 9 kl Nil
From 10 kl to 25 kl R9,27
From 26 kl to 30 kl R12,36
From 31 kl to 5 kl R19,06
More than 45 kl R20, 96
Fixed charge per month Tariff
0 kl to 9 kl Nil
Greater than 9 kl R83,43
*Tariffs exclude 15% VAT.
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WATER USAGE RATES PER KILOLITRE (EXCLUDING 15% BASIC FEE (INCLUDING VAT)
VAT)
0 𝑡𝑜 𝟔𝒌𝒍 FREE 𝟏𝟔 𝟑𝟐𝟕 𝑪𝑬𝑵𝑻𝑺
Over 𝟔𝒌𝒍 𝑡𝑜 𝟏𝟐 𝒌𝒍 𝑅20,01
Over 𝟏𝟐 𝒌𝒍 𝑡𝑜 40 𝑘𝑙 𝑅27,61
Over 40 𝑘𝑙 𝑅31,10
Please note the different format of writing.
See VAT inclusive or VAT exclusive as well as tariff indicated in cents
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Exam type water tariff question:
Answers:
2.1 Recycle grey water (bath & shower water) OR 2 min or shorter showers OR make
use of water tanks
2.2 Water consumption
=7 866,82 kl – 7 849 kl = 17,82kl
Suggested water usage
50 x 5 x 30
= 7 500 ℓ (Remember there is now litres and kilolitres in your answer so convert
to litres)
Surplus usage
17 820ℓ - 7 500ℓ
=10 320 ℓ
2.3 In information they indicated that the water bill is R1 016,12
Sewerage bill = 60% of the water bill
R1 016,12 x 0,60
= R609,67
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Total of the bill
1 016,12 + R609,67
=R1 625,79
Electricity tariffs:
Be aware of the words VAT inclusive or VAT exclusive and if the rate is in rand and cent or only in
cent
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2.2 At the end of August 2017, Dr Books received a water bill for 50 kilolitres of water
used at his home. Use the water tariff structure below and complete ANSWER
SHEET 1 (2.2.1 – 2.2.8)
15%
=
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2.3
2.3.1 The specification of the car indicates that a full tank covers
560 000 m at an average speed of 120 km/h
Use the calculations to determine whether they will need more than THREE full
tanks of petrol for a return trip. (4)
2.3.2 ANNEXURE E shows the toll fees that they will pay on their trip from Johannesburg
to Richards Bay. They will pass all the mainline toll gates along the N3 and N2. (6)
Calculate the total cost for FOUR full tanks of petrol and the toll fees for a return
trip.
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Telephone Tariffs
Prepaid tariff system Cell phone
The general formula for the prepaid tariff system is: - The length of time you
Prepaid cost = spend on your cell phone
𝒕𝒐𝒕𝒂𝒍 𝒏𝒖𝒎𝒃𝒆𝒓 𝒐𝒇 𝒖𝒏𝒊𝒕𝒔 ⨉ 𝒕𝒂𝒓𝒊𝒇𝒇 will determine how much
In a prepaid tariff system, if no calls are made, you will pay.
there are no costs. - Usually charged in
Rands/cents per minute or
Contract tariff system per second.
A cell phone contract for a specific period is taken - The billing structure of cell
out from a phone networks can either
service provider. be prepaid or on contract.
The cost per month includes: - Prepaid tariff system: A
o Subscription fee: Pays off the cost of the cell cell phone needs to be
phone, as well as administrative services purchased and then
and other options e.g. sms bundles. airtime for the cell phone
o Cost for the calls made during the month, needs to be purchased
some contracts include free minutes per separately.
month. - Airtime is bought in Rands,
The general formula for the contract tariff system which are converted into
is: units (minutes or seconds)
Contract cost = 𝑠𝑢𝑏𝑠𝑐𝑟𝑖𝑝𝑡𝑖𝑜𝑛 𝑓𝑒𝑒 + Cell.
(𝑡𝑜𝑡𝑎𝑙 𝑛𝑢𝑚𝑏𝑒𝑟 𝑜𝑓 𝑚𝑖𝑛𝑢𝑡𝑒𝑠 – 𝑛𝑢𝑚𝑏𝑒𝑟 𝑜𝑓
𝑓𝑟𝑒𝑒 𝑚𝑖𝑛𝑢𝑡𝑒𝑠) ⨉ 𝑡𝑎𝑟𝑖𝑓𝑓
Exam type question:
2.4 Niki needs to buy a cell phone. The table below shows the costs of 3
different packages from MTN.
Packages Phone and internet costs Call costs
1 -R2 500 cash for phone -R2 per minute for
-R50/month for internet calls
2 -R250 per month over 24 months -50 free minutes
including internet and phone. -R2,50 per minute for
calls after free
minutes used.
3 -R400 per month over 24 months; -120 free minutes
including internet and phone. -R1,50 per minute for
calls after free
minutes used
2.4.1 Determine the formula for the total costs per month (excluding the
phone) for Package 1 and 2.
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2.4.2 Determine which package (for phone, internet and calls) is cheapest
over 24 months if Niki makes 6 hours of calls per month.
Transport Tariffs
- The most common means of public transport in South Africa are taxi, bus and
train.
- Fares are based on distance travelled, the cost of petrol and the general
wear-and-tear on the vehicle.
- Single fares (one way only); return trips and weekly/monthly ticket fares can
be bought.
- People who use their private vehicles for transport often must pay for
parking. These fees are usually based on the duration of parking.
Example of standard fares charged when using a bus service.
Exam type questions
Question 3
The parking ticket of Mr Sibiya at OR Tambo airport showed the following
information:
ACSA parking ticket
Date of entry: 06 January 2019
Time: 07:30
Date of return: 10 January 2019
Time: 09:15
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Table 1: Bram Fischer International parking tariffs.
Shaded Parking Open Parking
Duration Rand ( R ) Rand ( R )
0 – 5 min Free Free
5 min – 1 17 12
hour
1 – 2 hours 23 14
2 – 4 hours 31 17
4 – 12 hours 45 31
12 – 24 100 67
hours
After 24 100× d + R44 for part 67× d + R29 for
hours thereof part thereof
Number of days (full days) = d
Drop and Go Lock-Up Garages
0 – 15min Free 12 hours or less R100
15 – 30 min 24
30 min – 1 hour 58
1 – 2 hours 117 Full day R150
2 – 24 hours 244
Tariffs increase for every additional hour or
part thereof with R55
Lost ticket (If there is no proof of travel) R500
3.1 Determine the amount that Mr Sibiya must expect to pay for using
the airport’s shaded parking.
3.2 Explain each of the following:
▪ The circumstances under which a person will feel
disadvantaged if the parking ticket is lost.
▪ The length of time for both the shaded and open parking,
that a lost parking ticket would be an advantage.
3.3 What measures are taken to discourage car owners, who must wait
for the passengers, to use the drop and go parking?
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