# Question 1

Use ANNEXURE A to answer the questions that follow.

1.1.1 Give the name of the borrower. (2)

1.1.2 State the end date (month and year) of the loan. (2)

1.1.3 Calculate the difference between the insured value of the property and the registered bond amount. (2)

1.1.4 Determine the total administration fee payable for the whole loan period. (3)

1.1.5 On 30 January 2014 the interest rate was decreased by 0,5%. Find the interest rate used before 30 January 2014. (2)

1.1.6 Calculate the VAT amount that is included in the monthly administration fee. (3)

1.1.7 Explain the term home loan. (2)

1.1.8    Choose ONE of the following statements that correctly explains why the interest amounts charged for February and March are different:

A. The interest rate changed.

B. Interest is charged on the daily outstanding balance.

C. The amount of interest decreases monthly. (2)

1.1.9 Due to a bank error the debit order was unpaid on I October 2013. The debit order was paid on 2 October 2013. The bank rectified the error by making an adjustment, as shown in the statement.

(a) Calculate the adjustment amount. (2)

(b) Hence, state whether this adjustment amount should be reflected as a debit or a credit. (2)

1.1.10 Calculate the amount of interest due on 1 April 2014 to be shown on the next statement.

B = balance on Ist of the previous month

N = the number of days in the month

R = the interest rate (3)

Use the information in the table above and the graphs on ANSWER SHEET 1 to answer the questions that follow.

1.2.1 Explain the term variable cost in this context. (2)

1.2.2 Calculate the exact total cost of renting the Beach Hotel venue for 230 people. You may use the following formula:

Total cost (in rand) = fixed cost + 230 x variable cost (3)

1.2.3     Determine:

(a)The cheapest venue if only 90 persons attend the event (2)

(b)The maximum number of people that can attend the event if the total cost of the venue is RI5 000 (2)

1.2.4 Khumu sells the tickets for RI 50 each.

(a)Draw the income graph from the sale of up to 200 tickets on the same grid as the total cost graphs on ANSWER SHEET 1. (4)

(b)Calculate the total profit to be made if she rents the Castle venue and pays for 250 people, but sells only 194 tickets. (5)

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