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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) $$\text{20,46}$$ $$\text{114,00}$$ $$\text{11,40}$$ $$\text{38,53}$$ $$\text{5,13}$$ $$\text{221,00}$$ $$\text{404,00}$$