Question

Test Your Understanding 1. Mr Jones would like to calculate the cost of using 32 kl of water per month. Study the water tariff table below and calculate the difference in cost that Mr Jones would have to pay from 2014 to 2015: Prices per kilolitre excluding VAT k < 9 k < 25 kl < 30 k < 32 0 9 25 30 2014 nil R13,51 R17,99 R27,74 2015 LOWA nil R14,79 R19,70 R30,38 C​

Answer 1

To calculate the cost difference between 2014 and 2015 for using 32 kl of water per month, we need to find the price per kl for the relevant tiers in both years and then multiply by 32.

In 2014, the price per kl for usage between 25 and 30 kl was R17.99. Since Mr Jones used 32 kl of water, he exceeded this tier and would have been charged the price per kl for usage between 30 and 32 kl, which was R27.74. Therefore, the total cost for 32 kl of water in 2014 would have been:

25 kl x R17.99 = R449.75

7 kl x R27.74 = R193.18

Total = R642.93

In 2015, the price per kl for usage between 30 and 32 kl was R30.38. Therefore, the total cost for 32 kl of water in 2015 would have been:

32 kl x R30.38 = R973.76

The difference in cost between 2014 and 2015 for using 32 kl of water per month is:

R973.76 - R642.93 = R330.83

Therefore, Mr Jones would have to pay R330.83 more in 2015 compared to 2014 for using 32 kl of water per month.

Answer 2

Answer: R2.64

Explanation:

To calculate the difference in cost that Mr Jones would have to pay from 2014 to 2015, we need to find the cost of using 32 kl of water per month in 2014 and 2015, respectively, and then find the difference between the two costs.

From the table given, we can see that in 2014, the cost of using 32 kl of water per month would fall in the fourth category, where the price per kilolitre is R27.74. Therefore, the total cost of using 32 kl of water per month in 2014 would be:

32 kl x R27.74/kl = R887.68

In 2015, the water tariff has changed, and the cost of using 32 kl of water per month would fall in the fourth category, where the price per kilolitre is R30.38. Therefore, the total cost of using 32 kl of water per month in 2015 would be:

32 kl x R30.38/kl = R972.16

The difference in cost between 2014 and 2015 would be:

R972.16 - R887.68 = R84.48

Therefore, Mr Jones would have to pay R84.48 more in 2015 than in 2014.