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2.1 State TWO ways of calculating interest on credit agreements - NSC Consumer Studies - Question 2 - 2022 - Paper 1
Question 2
2.1 State TWO ways of calculating interest on credit agreements. 2.2 Define the term grey goods/parallel imports. 2.3 State THREE ways in which consumers can save ... show full transcript
Worked Solution & Example Answer:2.1 State TWO ways of calculating interest on credit agreements - NSC Consumer Studies - Question 2 - 2022 - Paper 1
Step 1
State TWO ways of calculating interest on credit agreements.
Answer
- Simple interest: This method calculates interest on the principal amount only, not on the interest accrued over time.
- Compound interest: This method calculates interest on the principal amount as well as the previously accrued interest, leading to interest on interest.
Step 2
Step 3
State THREE ways in which consumers can save water when gardening.
Answer
- Use grey water from the overflow pipe of the geyser.
- Water plants during the cooler parts of the day, such as early morning or late evening, to reduce evaporation.
- Implement a drip irrigation system to deliver water directly to the plant roots efficiently.
Step 4
Explain the following taxes:
Answer
2.4.1 VAT (value-added tax): A percentage added to the price of goods and services at each stage of production; consumers ultimately pay VAT.
2.4.2 Excise duty (sin tax): A tax levied on specific goods and services, often to deter consumption of harmful products.
Step 5
State THREE ways of saving electricity when using a refrigerator.
Answer
- Allow air to circulate in the refrigerator by not overloading it, which allows it to maintain a consistent temperature.
- Make sure the refrigerator door is closed properly and not opened unnecessarily.
- Regularly defrost the refrigerator to ensure optimal cooling efficiency.
Step 6
Discuss what municipalities can do to reduce crime and make communities safer to live in.
Answer
Municipalities can improve safety through measures such as installing streetlights to enhance visibility at night, employing community policing strategies, and maintaining public spaces to deter criminal activity. Additionally, engaging communities in safety programs and cleaning initiatives can foster a safer environment.
Step 7
Explain how a tiered-level/multi-level marketing scheme works.
Answer
A multi-level marketing scheme operates similarly to a legal pyramid scheme, where individuals sell products directly and earn commissions on their sales. Participants can also recruit others to sell products and earn a percentage of those recruits' sales, creating a tiered commission structure.
Step 8
Step 9
Explain how the cooling-off period protected Ayanda when she cancelled the alarm system contract.
Answer
The cooling-off period allows consumers to change their minds after signing a contract, often specified as a timeframe within which a cancellation can occur without penalty. Ayanda was able to cancel her contract without facing any fees due to this legal protection.
Step 10
Discuss the advantages for the natural environment when using gas.
Answer
Using gas has several environmental advantages: It is cleaner than solid fuels, producing fewer pollutants; it typically results in lower carbon emissions compared to coal; and it can contribute to reduced environmental footprints due to efficient energy use.
Step 11
Describe the impact that increasing fuel prices have on consumers' rights to satisfy their basic needs.
Answer
Rising fuel prices limit consumers' ability to meet basic needs by increasing transportation costs, leading to higher prices for goods. This can reduce disposable income, forcing consumers to prioritize essential purchases, potentially compromising their access to necessary products and services.