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\begin{tabular}{|c|c|}
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\multicolumn{2}{|c|}{
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Decoform furniture factory shop is having a birthday sale. Dr. Dlamini wants to buy a TV \\
plasma unit valued at R4,999.00 using the cash option. All prices include value added tax \\
(VAT). \\
Study the payment options in TABLE 1 below and answer the questions that follow.
\end{tabular}} \\
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\multicolumn{2}{|l|}{TABLE 1: PAYMENT OPTIONS} \\
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\begin{tabular}{l}
CASH OPTION \\
Television plasma unit (120 cm) \\
Price: R4,999 \\
Discount: 10\% \\
VAT inclusive \\
VAT 15\%
\end{tabular}
&
\begin{tabular}{l}
LAY-BYE OPTION \\
Television plasma unit (120 cm) \\
Price: R4,999 \\
Deposit: 15\% \\
6 equal monthly instalments \\
NB: No discount on lay-bye items
\end{tabular} \\
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\end{tabular}

1.1.1 Write down the cash price in words.

1.1.2 Calculate the total cost price for the TV plasma unit (cash option).

1.1.3 Determine the original price of the TV plasma unit before VAT was added.

1.1.4 Calculate the deposit amount for the lay-bye option.

1.1.5 Write down the length size of the television plasma unit in meters.



Answer :

GinnyAnswer
Sure, let's go through each question step-by-step:

### 1.1.1 Write down the cash price in words.
The cash price of the TV plasma unit is R4,999.00. In words, this is:
"Four thousand nine hundred ninety-nine rand."

### 1.1.2 Calculate the total cost price for the TV plasma unit (cash option).
The original cash price of the TV plasma unit is R4,999.00. A 10% discount is applied to this price.

First, let's figure out the discount amount:
[tex]\[ \text{Discount amount} = \text{Price} \times \text{Discount} = 4999 \times 0.10 = 499.90 \][/tex]

Now, subtract the discount from the original price to get the discounted price:
[tex]\[ \text{Discounted Price} = 4999 - 499.90 = 4499.10 \][/tex]

So, the total cost price for the TV plasma unit (cash option) is R4,499.10.

### 1.1.3 Determine the original price of the TV plasma unit before VAT was added.
The discounted price includes VAT at a rate of 15%. To find the original price before VAT was added, we need to remove the VAT from the discounted price.

The formula to find the price before VAT is:
[tex]\[ \text{Price before VAT} = \frac{\text{Discounted Price}}{1 + \text{VAT rate}} \][/tex]

Substitute the values:
[tex]\[ \text{Price before VAT} = \frac{4499.10}{1 + 0.15} = \frac{4499.10}{1.15} \approx 3912.26 \][/tex]

So, the original price of the TV plasma unit before VAT was added is approximately R3,912.26.

### 1.1.4 Calculate the deposit amount for the lay-bye option.
The lay-bye option requires a 15% deposit on the original price.

First, let's figure out the deposit amount:
[tex]\[ \text{Deposit Amount} = \text{Price} \times \text{Deposit Rate} = 4999 \times 0.15 = 749.85 \][/tex]

So, the deposit amount for the lay-bye option is R749.85.

### 1.1.5 Write down the length size of the television plasma unit in metres.
The length of the television plasma unit is given as 120 cm. To convert this to metres, we divide by 100 (since there are 100 cm in a metre).

[tex]\[ \text{Length in metres} = \frac{120 \text{ cm}}{100} = 1.2 \text{ metres} \][/tex]

So, the length size of the television plasma unit is 1.2 metres.

I hope this detailed step-by-step solution helps you understand how to approach each part of the question!

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