Question

Mr and Mrs Jones received their heating bill the details follows

Present meter reading: 2410
Previous meter reading: 2090
Charge per unit: 12p per unit
Service charge: 20p per day for 14 days.
VAT: 5%
Find the total increase of the heating bill.

Answer 1

Previous meter reading: 2090

Charge per unit: 12p per unit

Explanation:

Answer 2

£43.26

Explanation:

Given readings:

• Present meter reading: 2410
• Previous meter reading: 2090

Calculate the number of units used:

`\begin{aligned} \textsf{Number of units used} &= \textsf{Present meter reading} - \textsf{Previous meter reading}\\&= \sf 2410 - 2090\\&= \sf 320\; units \end{aligned}`

Given charges:

• Charge per unit: 12p per unit.
• Service charge: 20p per day for 14 days.

Calculate the cost excluding VAT:

`\begin{aligned}\textsf{Cost (exc. VAT)}&=\textsf{(\# of units $*$ charge per unit)}+\textsf{(\# of days $*$ service charge per day)}\\ & = \sf 320 * \£0.12 + 14 * \£0.20\\&= \sf \£38.4+\£2.8\\&= \sf \£41.20\end{aligned}`

To find the total cost including VAT at 5%, multiply the cost (exc. VAT) by 1.05:

`\begin{aligned}\textsf{Cost (inc. VAT at 5\%)}&= \sf \£41.20 * 1.05\\&= \sf \£43.26\end{aligned}`