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ANNEXURE A shows a summary of Bomvana's Vehicle and Household Insurance Policy - NSC Mathematical Literacy - Question 2 - 2022 - Paper 1
Question 2
ANNEXURE A shows a summary of Bomvana's Vehicle and Household Insurance Policy. Use ANNEXURE A to answer the questions that follow. 2.1.1 Write down the policy num... show full transcript
Worked Solution & Example Answer:ANNEXURE A shows a summary of Bomvana's Vehicle and Household Insurance Policy - NSC Mathematical Literacy - Question 2 - 2022 - Paper 1
Step 1
Step 2
2.1.2 Determine the missing value A, the monthly premium for the VW Polo.
Answer
To find the value of A, we can assess the context of the premiums listed in the summary. Based on the information provided:
- Total monthly premiums excluding discount add up to ThR 184,21.
- To determine A, we can conclude:
- It follows that A represents the VW Polo premium, which may be calculated accordingly.
Step 3
2.1.3 Calculate the percentage discount that he receives if the total monthly premium before the discount was R2 450,36.
Answer
To calculate the percentage discount , we can use the formula:
ext{Percentage Discount} = rac{ ext{Total Premium - Discounted Premium}}{ ext{Total Premium}} imes 100
Where:
- Total Premium = R2 450,36
- Discounted Premium = R2 184,21 (example used) Thus,
Step 4
2.1.4 Determine the amount the insurance company will pay the panel beaters.
Answer
The insurance company will cover the costs for the damage claim submitted by the panel beaters. Given a quotation of R43 520, the amount to be paid is:
- Amount due: R43 520
- Insurance coverage: R43 520 - R7 000
Thus, the insurance company will pay R36 520.
Step 5
2.1.5 Calculate the amount of VAT included in the total monthly premium.
Answer
Given the total premium includes VAT, we can compute the VAT amount using:
- Total Monthly Premium = R2 450,36
- Excluding VAT (1.15 factor to apply for VAT included)
- We know:
Step 6
2.1.6 Give ONE possible reason for this big difference in the premium amount.
Answer
One reason could be the age of the vehicles. The VW Polo may have a higher replacement value due to being newer or a higher model, compared to the older Toyota Corolla. This leads to a significantly lower insurance premium for the Toyota.
Step 7
2.1.7 Explain how the purchase of this new item will affect his MiHome content premium.
Answer
The addition of the lounge suite to the household contents will increase the insured value, which will consequently lead to a higher premium cost. Since the coverage limit was R200 000 before, it could lead to reassessment of costs to ensure sufficient coverage. A detailed review and adjustment of the premium will be necessary to reflect the increased value of household items.