Question

1x37 2.4. Thato is a resident in the Phakisa municipality and below is a tariff on a sliding scale that the municipality uses to charge her for water usage. Water Usage Up to 6 kl 7 kl - 30 kl 30.1 kl 60 kl More than 60 kl Fixed charge if > 6 kl = R80,70 Free for infrastructure if > = R7,15 Rate per kilolitre (VAT of 15%) inclusive 0 R6,48 R16,20 R21,60 2.4.1. Calculate the cost if Thato uses 35 kl of water charge 2.4.2. Calculate the new fixed charge if it is increased by 15%​

Answer 1

The cost for Thato's usage of 35 kl of water is R702.48.

Step-by-step explanation:

Since Thato used 35 kl of water, she falls into the third category where the rate is R16.20 per kl. We can calculate the cost as follows:

Cost = Fixed charge + (Rate per kl × Usage) + Infrastructure fee

The fixed charge is free for infrastructure, so we don't need to include it in this calculation.

Cost = (Rate per kl × Usage) + Infrastructure fee

= (R16.20 × 35) + R7.15

= R567.00 + R7.15

= R574.15

We also need to add 15% VAT to the cost:

Total cost = Cost × (1 + VAT)

= R574.15 × 1.15

= R702.48

Therefore, the cost for Thato's usage of 35 kl of water is R702.48.

2.4.2. Answer: The new fixed charge would be R92.81.

Step-by-step explanation:

If the fixed charge is increased by 15%, the new fixed charge would be:

New fixed charge = Old fixed charge + (15% of old fixed charge)

= R80.70 + (0.15 × R80.70)

= R80.70 + R12.11

= R92.81

Therefore, the new fixed charge would be R92.81.