Define VAT. 2. Calculate the VAT amount on the old price of PPH (R988.00) if the VAT rate is 15%. 3. Calculate the difference between the old (R223.00) and new (R13.00) prices of the UTM.

Here are the solutions to the questions: 2.1.1 The acronym VAT stands for Value Added Tax. 2.1.2 To calculate the amount of VAT payable on the old price for PPH: Step 1: Identify the old price of PPH and the VAT rate. Old price of PPH (including VAT) = R988.00 VAT rate = 15% Step 2: Calculate the VAT amount. Since the price includes 15% VAT, the R988.00 represents 115% of the price before VAT. VAT amount = VAT rate100\% + VAT rate × Price including VAT VAT amount = (15)/(100 + 15) × R988.00 VAT amount = (15)/(115) × R988.00 VAT amount = R128.8695... Step 3: Round the VAT amount to two decimal places. VAT amount ≈ R128.87 The amount of VAT payable on the old price for PPH is R128.87. 2.1.3 To calculate the difference between the new price and the old price of the UTM: Step 1: Identify the old and new prices of the UTM. Old price of UTM = R223.00 New price of UTM = R13.00 Step 2: Calculate the difference. Difference = Old price - New price Difference = R223.00 - R13.00 Difference = R210.00 The difference between the new price and the old price of the UTM is R210.00.