### 1.1.1 Define the concept "Income" in this context.
Income refers to the total amount of money received by an individual or household from various sources such as salaries, wages, investments, benefits, and other forms of earnings. It's the financial flow that allows for the purchase of necessary and discretionary goods and services, payment of taxes, and savings or investments.
### 1.1.2 Distinguish the difference between fixed expenses and variable expenses.
Fixed Expenses are costs that do not change from month to month. These are regular payments that are usually the same amount each time. Examples include rent or mortgage payments, car loans, insurance premiums, and certain utility bills.
Variable Expenses are costs that can vary from month to month depending on the level of usage or need. These expenses fluctuate and can be adjusted or controlled based on consumption habits. Examples include groceries, electricity, water, entertainment, and dining out.
### 1.1.3 Determine the values of [tex]\(A, B\)[/tex] and [tex]\(C\)[/tex] from TABLE 1.
Given:
[tex]\(A = R \cdot C = 5675 \times 509\)[/tex]
So,
[tex]\[A = 2888575.\][/tex]
### 1.1.4 Determine the ratio of Electricity to Grocery in its simplest form.
Assuming we have values for Electricity and Grocery from TABLE 1, let's denote the values as [tex]\( E \)[/tex] for Electricity and [tex]\( G \)[/tex] for Grocery.
To find the simplest form of the ratio, assume:
[tex]\[ E = \text{Electricity amount}, \][/tex]
[tex]\[ G = \text{Grocery amount}.\][/tex]
To simplify the ratio of [tex]\( E \)[/tex] to [tex]\( G \)[/tex]:
1. Find the greatest common divisor (GCD) of [tex]\( E \)[/tex] and [tex]\( G \)[/tex].
2. Divide both [tex]\( E \)[/tex] and [tex]\( G \)[/tex] by the GCD to get the simplest ratio form [tex]\( \frac{E}{G} \)[/tex].
Without specific numbers, let's use representative values if available. For now, this is a general method.
### 1.1.5 Name ONE variable expense that can fall under "other".
One example of a variable expense that can fall under "other" is Entertainment. This includes costs for activities such as movies, sporting events, clubs, arts and crafts, etc., which can vary each month.
### 1.1.6 Every month rent is paid with a debit order. Calculate the bank fees they pay on the debit order every month. The bank calculates the fees for the debit orders using the following formula:
Fees [tex]\( = R 3.65 + 0.42 \% \)[/tex] of the value of the debit order.
Given:
- Rent value ([tex]\( R \)[/tex]): \[tex]$5675
- Fixed fee component: \$[/tex]3.65
- Percentage fee component: 0.42% of [tex]\( R \)[/tex]
Calculate total bank fees:
[tex]\[ \text{Percentage fee} = 0.42\% \text{ of } 5675 = \frac{0.42}{100} \times 5675 = 23.835. \][/tex]
Total bank fees:
[tex]\[ \text{Bank fees} = 3.65 + 23.835 = 27.484999999999996 \][/tex]
Therefore, the total bank fees on the debit order every month are approximately \$27.485.
