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End Of Chapter Activity

Exercise 11.5

The TownBank current account charges \(\text{R}\,\text{3,30}\) plus \(\text{R}\,\text{1,20}\) per \(\text{R}\,\text{100}\) or part thereof for a cash withdrawal from a TownBank ATM. The first five withdrawals in a month are free. Determine the bank charges for a withdrawal of:

\(\text{R}\,\text{400}\), the sixth withdrawal

\(\text{R}\,\text{3,30}\) + \(\text{4}\) \(\times\) \(\text{R}\,\text{1,20}\) = \(\text{R}\,\text{8,10}\)

\(\text{R}\,\text{850}\), the fourth withdrawal

Free

\(\text{R}\,\text{3 000}\), the tenth withdrawal

\(\text{R}\,\text{3,30}\) + \(\text{30}\) \(\times\) \(\text{R}\,\text{1,20}\) = \(\text{R}\,\text{15,30}\)

\(\text{R}\,\text{250}\), the seventh withdrawal

\(\text{R}\,\text{3,30}\) + \(\text{3}\) \(\times\) \(\text{R}\,\text{1,20}\) = \(\text{R}\,\text{6,90}\)

The Success Current Account charges \(\text{R}\,\text{3,75}\) plus \(\text{R}\,\text{0,75}\) per full \(\text{R}\,\text{100}\), to a maximum charge of \(\text{R}\,\text{25,00}\) for debit card purchases. Determine the charges for a purchase of:

\(\text{R}\,\text{374,55}\)

\(\text{R}\,\text{3,75}\) + \(\text{3}\) \(\times\) \(\text{R}\,\text{0,75}\) = \(\text{R}\,\text{6,00}\)

\(\text{R}\,\text{990,87}\)

\(\text{R}\,\text{3,75}\) + \(\text{9}\) \(\times\) \(\text{R}\,\text{0,75}\) = \(\text{R}\,\text{10,50}\)

\(\text{R}\,\text{2 900,95}\)

\(\text{3,75}\) + \(\text{29}\) \(\times\) \(\text{R}\,\text{0,75}\) = \(\text{R}\,\text{25,50}\). This exceeds the maximum charge or \(\text{R}\,\text{25}\), so the bank charge will be \(\text{R}\,\text{25,00}\).

You are given the following information about bank charges for a TownBank current account.

Withdrawals

Over the counter: \(\text{R}\,\text{23,00}\) plus \(\text{R}\,\text{1,10}\) per \(\text{R}\,\text{100}\) or part thereof

TownBank ATM: \(\text{R}\,\text{3,50}\) plus \(\text{R}\,\text{1,10}\) per \(\text{R}\,\text{100}\) or part thereof

Another bank's ATM: \(\text{R}\,\text{5,50}\) plus \(\text{R}\,\text{3,50}\) plus \(\text{R}\,\text{1,10}\) per \(\text{R}\,\text{100}\) or part thereof

Tillpoint - cash only: \(\text{R}\,\text{3,65}\)

Tillpoint - cash with purchase: \(\text{R}\,\text{5,50}\)

Calculate the fee charged for a \(\text{R}\,\text{2 500}\) withdrawal from a TownBank ATM.

\(\text{R}\,\text{3,50}\) + \(\text{25}\) \(\times\) \(\text{R}\,\text{1,10}\) = \(\text{R}\,\text{31,00}\)

Calculate the fee charged for a \(\text{R}\,\text{750}\) withdrawal from another bank's ATM.

\(\text{R}\,\text{5,50}\) + \(\text{R}\,\text{3,50}\) + \(\text{8}\) \(\times\) \(\text{R}\,\text{1,10}\) = \(\text{R}\,\text{17,80}\)

Calculate the fee charged for a \(\text{R}\,\text{250}\) withdrawal from the teller at a branch.

\(\text{R}\,\text{23,00}\) + \(\text{3}\) \(\times\) \(\text{R}\,\text{1,10}\) = \(\text{R}\,\text{26,30}\)

What percentage of the \(\text{R}\,\text{250}\) withdrawal in question (c) is charged in fees?

\(\frac{\text{26,30}}{\text{250}} \times \text{100}\)=\(\text{10,52}\%\)

Would it be cheaper to withdraw \(\text{R}\,\text{1 500}\) at the bank, from a TownBank ATM or from a till point with a purchase?

At the bank: \(\text{R}\,\text{23}\) + \(\text{15}\) \(\times\) \(\text{R}\,\text{1,10}\) = \(\text{R}\,\text{39,50}\). At a TownBank ATM: \(\text{R}\,\text{3,50}\) + \(\text{15}\) \(\times\) \(\text{R}\,\text{1,10}\) = \(\text{R}\,\text{20,00}\). At a tillpoint with a purchase: \(\text{R}\,\text{5,50}\). So it will be cheapest to draw at a tillpoint, with a purchase.

Study the graph and answer the questions that follow:

Complete the table below: (Fill in all the missing spaces)

Amount invested (in Rands)

\(\text{100}\)

\(\text{200}\)

\(\text{300}\)

\(\text{400}\)

\(\text{500}\)

\(\text{600}\)

\(\text{700}\)

Interest Earned (in Rands)

\(\text{10}\)

\(\text{30}\)

\(\text{50}\)

\(\text{70}\)

Interest/Amount \(\times\) \(\text{100}\)

(Interest Rate)

Amount invested in Rands

\(\text{100}\)

\(\text{200}\)

\(\text{300}\)

\(\text{400}\)

\(\text{500}\)

\(\text{600}\)

\(\text{700}\)

Interest Earned in Rands

\(\text{10}\)

\(\text{20}\)

\(\text{30}\)

\(\text{40}\)

\(\text{50}\)

\(\text{60}\)

\(\text{70}\)

Interest/Amount \(\times\) \(\text{100}\)

(Interest Rate)

\(\text{10}\%\)

\(\text{10}\%\)

\(\text{10}\%\)

\(\text{10}\%\)

\(\text{10}\%\)

\(\text{10}\%\)

\(\text{10}\%\)

What kind of proportionality exists between the amount invested and the interest earned?

Direct proportionality.

You decide to invest \(\text{R}\,\text{10 000}\). Calculate the amount of interest you can expect to earn.

Interest rate is fixed at \(\text{10}\%\). \(\text{10}\%\) of \(\text{R}\,\text{10 000}\) = \(\text{R}\,\text{1 000}\) of interest earned.

Complete the table below by calculating the missing amounts.

Amount (R)

\(\text{17,95}\)

\(\text{33,80}\)

\(\text{4,50}\)

VAT (R)

\(\text{2,51}\)

\(\text{14,00}\)

\(\text{1,4}\)

Total (R)

\(\text{20,46}\)

\(\text{11,40}\)

\(\text{221}\)

\(\text{404,00}\)

Amount (R)

\(\text{17,95}\)

\(\text{100,00}\)

\(\text{10,00}\)

\(\text{33,80}\)

\(\text{4,50}\)

\(\text{193,86}\)

\(\text{354,39}\)

VAT (R)

\(\text{2,51}\)

\(\text{14,00}\)

\(\text{1,4}\)

\(\text{4,73}\)

\(\text{0,63}\)

\(\text{27,14}\)

\(\text{49,61}\)

Total (R)

\(\text{20,46}\)

\(\text{114,00}\)

\(\text{11,40}\)

\(\text{38,53}\)

\(\text{5,13}\)

\(\text{221,00}\)

\(\text{404,00}\)