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Calculate the monthly instalment, cash price excluding VAT, and total extra cost for a rent-to-own solar system, given specific payment options.

Mathematics

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2.2.1)

  1. Identify the monthly instalment from the table.

    The table for "OPTION 1: RENT-TO-OWN" states "Pay for 7 years at R1 549 p/m".
    The monthly instalment is R1 549\boxed{\text{R1 549}}.

    2.2.2)

  2. Identify the cash price including VAT.

    From "OPTION 2: CASH PRICE", the price is R78 200 (incl. VAT).

  3. Calculate the cash price excluding VAT.

    Assuming a standard VAT rate of 15%.

    Cash Price (excl. VAT)=Cash Price (incl. VAT)1+VAT rate\text{Cash Price (excl. VAT)} = \frac{\text{Cash Price (incl. VAT)}}{1 + \text{VAT rate}} Cash Price (excl. VAT)=R78 2001+0,15\text{Cash Price (excl. VAT)} = \frac{\text{R78 200}}{1 + 0,15} Cash Price (excl. VAT)=R78 2001,15\text{Cash Price (excl. VAT)} = \frac{\text{R78 200}}{1,15} Cash Price (excl. VAT)=R67 000\text{Cash Price (excl. VAT)} = \text{R67 000}

    The cash price of the home solar system unit, excluding VAT, is R67 000\boxed{\text{R67 000}}.

    2.2.3)

  4. Calculate the total cost of the rent-to-own option including the buy-out.

    Number of months = 7 years ×\times 12 months/year = 84 months.
    Total monthly payments = R1 549/month ×\times 84 months = R129 916.
    Total rent-to-own cost = Total monthly payments + Initiation fee + Buy-out after rental period
    Total rent-to-own cost = R129 916 + R782 + R7 820
    Total rent-to-own cost = R138 518.

  5. Calculate the extra amount Mieecke has to pay compared to buying for cash.

    The cash price (incl. VAT) is R78 200.
    Extra amount = Total rent-to-own cost - Cash price (incl. VAT)
    Extra amount = R138 518 - R78 200
    Extra amount = R60 318.
    The extra amount Mieecke has to pay is R60 318\boxed{\text{R60 318}}.

    2.3.1)

  6. Calculate Mieecke's annual taxable income.

    Mieecke's monthly taxable income is R39 275,85.
    Annual taxable income = R39 275,85 ×\times 12 = R471 310,20.

  7. Identify the tax bracket.

    (Assuming ANNEXURE A refers to the South African tax tables for individuals 2023/2024, which are:
    1 - 237 100: 18%
    237 101 - 370 500: R42 678 + 26% of amount over R237 100
    370 501 - 512 800: R77 362 + 31% of amount over R370 500
    512 801 - 673 000: R121 475 + 36% of amount over R512 800
    ...)
    Mieecke's annual taxable income of R471 310,20 falls into the bracket of R370 501 - R512 800.

    2.3.2)

  8. Calculate the tax based on the identified bracket.

    For the R370 501 - R512 800 bracket, the tax is R77 362 + 31% of the amount over R370 500.
    Tax = R77 362 + 0,31 ×\times (R471 310,20 - R370 500)
    Tax = R77 362 + 0,31 ×\times R100 810,20
    Tax = R77 362 + R31 251,162
    Tax = R108 613,162.

  9. Subtract the primary rebate.

    Mieecke is 45 years old, so she qualifies for the primary rebate.
    The primary rebate for 2023/2024 is R17 235.
    Annual tax payable = Tax - Primary rebate
    Annual tax payable = R108 613,162 - R17 235
    Annual tax payable = R91 378,162.
    Rounding to two decimal places, the annual tax payable is R91 378,16\boxed{\text{R91 378,16}}.

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