Question

2 2.1 1.1 1.2 1.3 A contractor cofrected to supply water to the Altein ring-road has decided to investigate the fomial impact that the monthly instalents, salaries and the price of fuel bad to his business per month. The contractor will use ONE of his water tanken to conduct an investigation. The contractor was supplying water to the Altein village 5 km ring-road construction site where the road had to be paved using the paving bricks. The paving of the road has started in January 2022 and ran for 10 months. THE MERCEDES BENZ WATER TANKER Adapted from aquatransport.co.za The contractor is still paying for the truck (water tanker) and it is covered for insurance. Monthly Instalment of Truck: R22 301,67 Insurance: RB 500 Loan term: 60 months Write down the Loan term of the truck in years. Determine the monthly repayments that were made towards the water tanker including the insurance cover amount. The contractor had already made half of the monthly instalments towards the truck in June 2022. Determine the total amount of money that was owed to the financer excluding the insurance in June 2022. Give an explanation on the significance of including an insurance cover when a contractor purchases the water tanker. The driver of the water tanker works for 5½ days per week and 9 hours per day on week days except on Saturdays where they work for a ½ day (4,5 hours). The rate per hour was R92,50 and the rate of pay was doubled on Saturdays. Calculate the amount of money that the tanker driver receive per day during week days. sked in March (2) (2) (2)​

Answer 1

Loan term of the truck in years:

The loan term of the truck is 60 months. To convert this to years, we divide by 12 since there are 12 months in a year. Therefore, the loan term of the truck in years is:

60 months ÷ 12 months/year = 5 years

Monthly repayments including insurance:

The monthly instalment of the truck is R22,301.67 and the insurance cover is R500. Therefore, the total monthly repayment including insurance is:

R22,301.67 + R500 = R22,801.67

Total amount owed to the financer excluding insurance in June 2022:

Half of the monthly instalments have been made towards the truck in June 2022, which means that 5 months' worth of payments have been made. Therefore, the total amount owed to the financer excluding insurance in June 2022 is:

(R22,301.67 × 55) - R500 = R1,223,592.35

Significance of including insurance cover:

Including an insurance cover when purchasing the water tanker is important because it provides protection for the contractor against unforeseen events such as accidents, theft, or damage to the vehicle. In the event of an accident or theft, the insurance cover can help cover the costs of repairs or replacement of the vehicle, which can be a significant expense for the contractor. Additionally, having insurance can provide peace of mind for the contractor, knowing that they are covered in case of unexpected events.

Tanker driver's daily pay during weekdays:

The driver works for 5½ days per week and 9 hours per day on weekdays, which amounts to:

5.5 days/week × 9 hours/day = 49.5 hours/week

The rate per hour is R92.50, so the driver's pay per day during weekdays is:

49.5 hours/week × R92.50/hour ÷ 5 days/week = R909.75/day