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End of chapter activity

End of chapter activity

Exercise 11.5 See solutions

The TownBank current account charges plus per 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:

, the sixth withdrawal

+ =

, the fourth withdrawal

Free

, the tenth withdrawal

+ =

, the seventh withdrawal

+ =

The Success Current Account charges plus per full , to a maximum charge of for debit card purchases. Determine the charges for a purchase of:

+ =

+ =

+ = . This exceeds the maximum charge or , so the bank charge will be .

You are given the following information about bank charges for a TownBank current account.

Withdrawals

Over the counter: plus per or part thereof

TownBank ATM: plus per or part thereof

Another bank's ATM: plus plus per or part thereof

Tillpoint - cash only:

Tillpoint - cash with purchase:

Calculate the fee charged for a withdrawal from a TownBank ATM.

+ =

Calculate the fee charged for a withdrawal from another bank's ATM.

+ + =

Calculate the fee charged for a withdrawal from the teller at a branch.

+ =

What percentage of the withdrawal in question (c) is charged in fees?

=%

Would it be cheaper to withdraw at the bank, from a TownBank ATM or from a till point with a purchase?

At the bank: + = . At a TownBank ATM: + = . At a tillpoint with a purchase: . 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)

Interest Earned (in Rands)

Interest/Amount

(Interest Rate)

Amount invested in Rands

Interest Earned in Rands

Interest/Amount

(Interest Rate)

%

%

%

%

%

%

%

What kind of proportionality exists between the amount invested and the interest earned?

Direct proportionality.

You decide to invest . Calculate the amount of interest you can expect to earn.

Interest rate is fixed at %. % of = of interest earned.

Complete the table below by calculating the missing amounts.

Amount (R)

VAT (R)

Total (R)

Amount (R)

VAT (R)

Total (R)

See solutions