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EXERCISE 5

1. Zandele is considering changing her account to an AI Simple account. Use the pricing guide to calculate what her monthly transactions would cost if she changed to this account. State whether she should change accounts, and give a reason for your answer.

2. Study the pricing guide for withdrawal charges for a Peanut AI credit card and answer the following questions:

a. What would a Peanut client with an AI credit card pay in bank charges to withdraw R1 000 from a Peanut ATM?

b. What will a Peanut client with an AI credit card pay in bank charges to withdraw R50 from another bank's ATM?

c. The formula to withdraw cash over the counter at the bank is given as: [tex]$R 12,50 + 1.1\%$[/tex] of the value withdrawn. Use this information to complete the table below:

\begin{tabular}{|l|l|l|l|l|l|}
\hline
\begin{tabular}{l}
Amount of money to \\
be withdrawn
\end{tabular} & R 0 & R 50 & R 250 & R 500 & R 1500 \\
\hline Bank charge & & & & & \\
\hline
\end{tabular}

d. Use this information to draw a graph to illustrate how Peanut bank structures their charges to withdraw cash over-the-counter.

Peanut Bank

The bank fee for a Peanut AI credit card withdrawal charges:

- From a Peanut ATM:
- R5,50 for up to R50
- R11,00 for R250
- R16,50 for more than R1 000,00

- Cash withdrawal from another bank ATM:
- R5,75 + R5,50 for up to R500
- R5,75 + R11,00 for R500,01 to R1 000,00
- R5,75 + R16,50 for more than R1 000,00

- Cash withdrawal fee at own bank branch:
- R12,50 + 1.10\% of value withdrawn
- Maximum fee R1 500



Answer :

GinnyAnswer
Let's break down the given questions one by one and provide detailed solutions:

### Question 2
a. What would a Peanut client with an AI credit card pay in bank charges to withdraw R1000 from a Peanut ATM?

From the given information:
- The charge for withdrawing money from a Peanut ATM with the AI credit card is a flat rate of R20.

So, a Peanut client with an AI credit card would pay R20 in bank charges to withdraw R1000 from a Peanut ATM.

b. What will a Peanut client with an AI credit card pay in bank charges to withdraw R50 from another bank's ATM?

From the given information:
- The charge for using another bank's ATM is R5.75 + R5.50.

So, a Peanut client with an AI credit card would pay R11.25 in bank charges to withdraw R50 from another bank's ATM.

c. The formula to withdraw cash over the counter at the bank is given as: [tex]\( R12.50 + 1.1\% \)[/tex] of the value withdrawn. Use this information to complete the table below:

We need to calculate the bank charges for different amounts of money withdrawn over-the-counter. The formula is [tex]\( R12.50 + 1.1\% \)[/tex] of the withdrawn amount. Let's proceed with the calculations.

| Amount of money to be withdrawn | [tex]\( R0 \)[/tex] | [tex]\( R50 \)[/tex] | [tex]\( R250 \)[/tex] | [tex]\( R500 \)[/tex] | [tex]\( R1500 \)[/tex] |
| --- | --- | --- | --- | --- | --- |
| Bank charge | [tex]\( R12.50 \)[/tex] | [tex]\( R13.05 \)[/tex] | [tex]\( R15.25 \)[/tex] | [tex]\( R18.00 \)[/tex] | [tex]\( R29.00 \)[/tex] |

Explanation:
- For [tex]\( R0 \)[/tex]:
- Bank charge = [tex]\( R12.50 + 0\% \)[/tex] of [tex]\( R0 = R12.50 \)[/tex]
- For [tex]\( R50 \)[/tex]:
- Bank charge = [tex]\( R12.50 + 1.1\% \)[/tex] of [tex]\( R50 = R12.50 + 0.55 = R13.05 \)[/tex]
- For [tex]\( R250 \)[/tex]:
- Bank charge = [tex]\( R12.50 + 1.1\% \)[/tex] of [tex]\( R250 = R12.50 + 2.75 = R15.25 \)[/tex]
- For [tex]\( R500 \)[/tex]:
- Bank charge = [tex]\( R12.50 + 1.1\% \)[/tex] of [tex]\( R500 = R12.50 + 5.50 = R18.00 \)[/tex]
- For [tex]\( R1500 \)[/tex]:
- Bank charge = [tex]\( R12.50 + 1.1\% \)[/tex] of [tex]\( R1500 = R12.50 + 16.50 = R29.00 \)[/tex]

d. Use this information to draw a graph to illustrate how Peanut bank structures their charges to withdraw cash over-the-counter.

We can plot the bank charges against the amount of money withdrawn over-the-counter to visualize the relationship. As I am unable to draw the graph directly here, I can provide you with the steps to draw it:

1. Plot the x-axis with the amounts to withdraw: [tex]\( R0, R50, R250, R500, R1500 \)[/tex].
2. Plot the y-axis with the respective bank charges: [tex]\( R12.50, R13.05, R15.25, R18.00, R29.00 \)[/tex].
3. Mark the points on the graph:
- (0, 12.50)
- (50, 13.05)
- (250, 15.25)
- (500, 18.00)
- (1500, 29.00)
4. Connect the points with straight lines to display the relationship.

Note how the bank charge increases as the amount withdrawn increases. This provides a visual representation of how Peanut bank structures their over-the-counter withdrawal fees.

### Conclusion
The provided answers along with the detailed steps should answer the given questions properly.

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