Below is a deon's municipality water expenses.study the municipality rates of water and answer the question below:
Number of kilolitres. Amount per kl excluding VAT
0 to 6 kl. R 0.00
6 to 10 kl. 6.40
11 to 20 kl. 10.60
21 to 35 kl. 16.50
36 to 50 kl. 19.80
More than 50 kl. 24.50
3.1. deon's household used 33 kl of water in July.determine how much he has to pay for excluding vat.
3.2.how much will he pay if vat is included vat at 15%
3.1. Deon used 33 kl of water, which falls into the "21 to 35 kl" category.
The amount he has to pay excluding VAT is R 16.50 per kl.
So, the total amount he has to pay excluding VAT is 33 kl * R 16.50/kl = R 544.50.
3.2. If VAT is included at a rate of 15%, the total amount Deon has to pay will be the sum of the amount excluding VAT and the VAT amount.
VAT amount = 15% of the amount excluding VAT
VAT amount = 15/100 * R 544.50 = R 81.68
Total amount Deon has to pay including VAT = Amount excluding VAT + VAT amount
Total amount = R 544.50 + R 81.68 = R 626.18
To determine how much Deon has to pay excluding VAT for using 33 kl of water in July, we need to determine which rate applies.
From the given information:
- Deon falls under the 21 to 35 kl rate since he used 33 kl.
- The rate for 21 to 35 kl is R16.50 per kl excluding VAT.
Step 1: Calculate the amount for 33 kl at the rate of R16.50 per kl.
Amount for 33 kl = 33 kl * R16.50/kl
Amount for 33 kl = R544.50
Therefore, Deon has to pay R544.50 excluding VAT for using 33 kl of water in July.
To determine how much Deon will pay if VAT at 15% is included, we need to calculate the VAT amount and add it to the total cost excluding VAT.
Step 2: Calculate the VAT amount at 15%.
VAT amount = R544.50 * 15/100
VAT amount = R81.68
Step 3: Calculate the total cost including VAT.
Total cost = R544.50 + R81.68
Total cost = R626.18
Therefore, Deon will pay R626.18 including VAT at 15% for using 33 kl of water in July.