Determine, as a percentage, the probability of randomly selecting an expense less than R250,00.

$$A = \text{R } 5000(1 + 0.20)$$ $$A = \text{R } 5000(1.20)$$ $$A = \text{R } 6000.00$$

The total value for Option A is R 6000.00.

3.1.3

$$A = \text{R } 5000(1.08)^2$$ $$A = \text{R } 5000(1.1664)$$ $$A = \text{R } 5832.00$$

The total value for Option B is R 5832.00.

3.1.4

$$\text{Interest}_A = \text{Total Value}_A - \text{Principal}$$ $$\text{Interest}_A = \text{R } 6000.00 - \text{R } 5000.00$$ $$\text{Interest}_A = \text{R } 1000.00$$

$$\text{Interest}_B = \text{Total Value}_B - \text{Principal}$$ $$\text{Interest}_B = \text{R } 5832.00 - \text{R } 5000.00$$ $$\text{Interest}_B = \text{R } 832.00$$

$$\text{R } 1000.00 > \text{R } 832.00$$

Option A gives James a higher interest.

3.2.1

$$\text{Fee} = 2\% \times \text{R } 1200$$ $$\text{Fee} = 0.02 \times \text{R } 1200$$ $$\text{Fee} = \text{R } 24.00$$

The fee amount charged is R 24.00.

3.2.2
The amount of R1224 was calculated by adding the withdrawal amount to the bank fee charged on the withdrawal.

$$\text{R } 1224 = \text{Withdrawal amount} + \text{Fee}$$ $$\text{R } 1224 = \text{R } 1200 + \text{R } 24$$ $$\text{R } 1224 = \text{R } 1224$$

The amount of R1224 was calculated as the total cost of the withdrawal, including the 2% fee.

3.3.1
The opening balance is the amount of money in an account at the beginning of a new financial period, typically the first day of a month or year.