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Calculate the cost of 2569 kWh of electricity and suggest two ways Mrs Smith can reduce her electricity cost.

Economics

ScanSolve AI Answer

Answer

R3722.49\text{R}3722.49

152.56 c/kWh152.56 \text{ c/kWh}

Step-by-step solution

8 steps
  1. Calculate the cost of 2569 kWh of electricity excluding VAT.

    The electricity is charged on a sliding scale:

    • 0−500 kWh0 - 500 \text{ kWh}: 500 kWh×105.75 c/kWh=52875 cents500 \text{ kWh} \times 105.75 \text{ c/kWh} = 52875 \text{ cents}
    • >500−1000 kWh>500 - 1000 \text{ kWh}: 500 kWh×129.82 c/kWh=64910 cents500 \text{ kWh} \times 129.82 \text{ c/kWh} = 64910 \text{ cents}
    • >1000−2000 kWh>1000 - 2000 \text{ kWh}: 1000 kWh×130.75 c/kWh=130750 cents1000 \text{ kWh} \times 130.75 \text{ c/kWh} = 130750 \text{ cents}
    • >2000−3000 kWh>2000 - 3000 \text{ kWh}: (2569−2000) kWh×132.09 c/kWh=569 kWh×132.09 c/kWh=75160.21 cents(2569 - 2000) \text{ kWh} \times 132.09 \text{ c/kWh} = 569 \text{ kWh} \times 132.09 \text{ c/kWh} = 75160.21 \text{ cents}

    Total cost excluding VAT:

    52875+64910+130750+75160.21=323695.21 cents52875 + 64910 + 130750 + 75160.21 = 323695.21 \text{ cents}

    Convert to Rands:

    323695.21 cents÷100=R3236.9521323695.21 \text{ cents} \div 100 = \text{R}3236.9521
  2. Calculate the cost including VAT.

    Assuming a standard VAT rate of 15%15\%:
    VAT amount:

    R3236.9521×0.15=R485.542815\text{R}3236.9521 \times 0.15 = \text{R}485.542815

    Total cost including VAT:

    R3236.9521+R485.542815=R3722.494915\text{R}3236.9521 + \text{R}485.542815 = \text{R}3722.494915

    Rounding to two decimal places:

    R3722.49\text{R}3722.49

    The cost of her purchase including VAT is R3722.49\boxed{\text{R}3722.49}.


  3. Suggest two ways Mrs Smith can reduce her electricity cost.

    • Use energy-efficient appliances (e.g., LED lighting, A-rated appliances).
    • Switch off lights and appliances when not in use.

  4. Identify the original tariff for units between 2001 and 3000 kWh.

    The original tariff is 132.09 c/kWh132.09 \text{ c/kWh}.

  5. Calculate the new tariff after a 15.5%15.5\% increase.

    New tariff = Original tariff ×(1+percentage increase)\times (1 + \text{percentage increase})

    132.09 c/kWh×(1+0.155)132.09 \text{ c/kWh} \times (1 + 0.155) 132.09 c/kWh×1.155132.09 \text{ c/kWh} \times 1.155 152.56395 c/kWh152.56395 \text{ c/kWh}

    Rounding to two decimal places:

    152.56 c/kWh152.56 \text{ c/kWh}

    The new tariff per unit for units between 2001 and 3000 kWh is 152.56 c/kWh\boxed{152.56 \text{ c/kWh}}.


  6. Calculate the cost of 1031.03 kWh of electricity excluding VAT.

    • 0−500 kWh0 - 500 \text{ kWh}: 500 kWh×105.75 c/kWh=52875 cents500 \text{ kWh} \times 105.75 \text{ c/kWh} = 52875 \text{ cents}
    • >500−1000 kWh>500 - 1000 \text{ kWh}: 500 kWh×129.82 c/kWh=64910 cents500 \text{ kWh} \times 129.82 \text{ c/kWh} = 64910 \text{ cents}
    • >1000−2000 kWh>1000 - 2000 \text{ kWh}: (1031.03−1000) kWh×130.75 c/kWh=31.03 kWh×130.75 c/kWh=4059.4325 cents(1031.03 - 1000) \text{ kWh} \times 130.75 \text{ c/kWh} = 31.03 \text{ kWh} \times 130.75 \text{ c/kWh} = 4059.4325 \text{ cents}

    Total cost excluding VAT:

    52875+64910+4059.4325=121844.4325 cents52875 + 64910 + 4059.4325 = 121844.4325 \text{ cents}

    Convert to Rands:

    121844.4325 cents÷100=R1218.444325121844.4325 \text{ cents} \div 100 = \text{R}1218.444325
  7. Calculate the cost including VAT.

    Assuming a standard VAT rate of 15%15\%:
    VAT amount:

    R1218.444325×0.15=R182.76664875\text{R}1218.444325 \times 0.15 = \text{R}182.76664875

    Total cost including VAT:

    R1218.444325+R182.76664875=R1401.21097375\text{R}1218.444325 + \text{R}182.76664875 = \text{R}1401.21097375

    Rounding to two decimal places:

    R1401.21\text{R}1401.21
  8. Verify Mrs Smith's claim.

    Mrs Smith claimed she paid R1389. Our calculation shows the cost is R1401.21.
    Since R1401.21≠R1389\text{R}1401.21 \neq \text{R}1389, her claim is not valid.

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