Convert R14 800 to USD using the exchange rate 1 = R16.53. 2. Calculate the price of a 820 laptop in ZAR using the new exchange rate $1 = R19.80. 3. Explain the impact of a weak rand on consumers. 4.

Given: $1 = R16.53$

$$\text{Amount in USD} = \frac{\text{Amount in ZAR}}{\text{Exchange rate}}$$ $$\text{Amount in USD} = \frac{R14\,800}{R16.53/\text{USD}} = \text{895.34 USD}$$

R14 800 is equivalent to $\boxed{\text{895.34 USD}}$.

1.3.2

Given: Laptop price = $820 New exchange rate:$1 = R19.80$

$$\text{Price in ZAR} = \text{Amount in USD} \times \text{Exchange rate}$$ $$\text{Price in ZAR} = 820 \times R19.80 = R16\,236.00$$

The price of the laptop in South African rand is $\boxed{\text{R16 236.00}}$.

1.3.3

A weak rand means that South African consumers need to spend more rand to buy the same amount of foreign currency. This makes imported goods, which are priced in foreign currency, more expensive when converted to rand, thus reducing the purchasing power of South African consumers.

QUESTION 2

2.1

A tariff is a charge or a list of charges for a service, especially one imposed by a government on imported or exported goods, or by a company for a particular service like telecommunications.

2.2

An advantage of Option A (Contract) is that it offers a fixed monthly fee which includes a set number of call minutes (300 minutes). This provides predictability in monthly spending and can be more cost-effective for users who consistently use a moderate to high number of minutes within the included allowance.

2.3

Option B (Pay-As-You-Go) has no monthly fee, and the call cost is R2.30 per minute.

$$\text{Cost for Option B} = 250 \text{ minutes} \times R2.30/\text{minute} = R575.00$$

Option A (Contract) has a fixed monthly fee of R220 and includes 300 minutes.
Since 250 minutes is less than 300 minutes, there are no extra call costs.

$$\text{Cost for Option A} = R220.00$$

Cost for Option A = R220.00
Cost for Option B = R575.00
Option A is cheaper.
The total monthly cost for option B is R575.00, and $\boxed{\text{Option A}}$ is cheaper for using 250 minutes.

2.4

Choosing the wrong tariff can significantly affect Lelo's monthly budget by leading to unnecessary expenses. If Lelo chooses a contract with a high fixed fee (like Option A) but uses very few minutes, they would be paying for minutes they don't use. Conversely, if Lelo chooses a pay-as-you-go option (like Option B) but makes many calls, the per-minute cost can quickly accumulate to a much higher total than a contract with included minutes, thus straining their budget.