Financial Numeracy – ADIA004 and S3PACQ4 – Paper C – 2022

Question 1 [9]

Provide only the final answer to the following questions. You can make use of the last
page for any calculations.

QUESTION FINAL
ANSWER
1.1 Evaluate √𝑧 if 𝑥 = 2, 𝑦 = 1 and 𝑧 = 25. [1]
𝑥 2 +𝑦
1.2 Calculate 3.25% of R100,000.00. [1]

1.3 Decrease R550,000.00 with 10%. [1]

1.4 If the selling price of R150,000.00 includes a profit of 16%

on the cost price, what was the cost price? [1]
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1.5 Convert the mixed fraction 2 into a decimal. [1]
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1.6 Hence, convert the mixed fraction 2 3 into a percentage. [1]

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1.7 6.9% in decimal form is? [1]

1.8 Water usage is charged at R250 for the first 500 litres, and
then R1.15 for each additional litre of water. If the average
household uses 1,900 litres of waters per month in a
particular area, determine the amount that will be due at the
end of the month? [1]

1.9 What is the degree of the polynomial 9𝑥 9 − 𝑥 5 + 310 ? [1]

Question 2 [2]

Determine the nature of the roots and the number of solutions of

4𝑥 2 + 5𝑥 + 16 = 0

without solving the equation.

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Financial Numeracy – ADIA004 and S3PACQ4 – Paper C – 2022

Question 3 [6]

Simplify the following expression completely:

(𝑥 + 1)2 𝑥 2 + 2𝑥 + 1
÷
3𝑥 − 6 𝑥2 − 4

Question 4 [12]

Solve for 𝑥:
4
4.1 √𝑥 2 + 156 − 4 = 0 [4]

FINAL ANSWER

4.2 5𝑥 2 = 15𝑥 + 13 [2]

FINAL ANSWER

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Financial Numeracy – ADIA004 and S3PACQ4 – Paper C – 2022

4.3 (2𝑥 − 16)(2𝑥 + 16) = 0 [3]

FINAL ANSWER

41 3 7
4.4 = 𝑥+2 + 𝑥−1 [3]
𝑥 2 +𝑥−2

FINAL ANSWER

Question 5 [8]

5.1 Solve for 𝑥 and 𝑦 simultaneously: [3]

3𝑥 − 𝑦 = 7
{
2𝑥 + 3𝑦 = 1

FINAL ANSWER
𝑥=
𝑦=

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Financial Numeracy – ADIA004 and S3PACQ4 – Paper C – 2022

5.2 Solve for 𝑥, 𝑦 and 𝑧 simultaneously: [5]

2𝑥 − 4𝑦 + 5𝑧 = −33
{ 4𝑥 − 𝑦 = −5
−2𝑥 + 2𝑦 − 3𝑧 = 19

FINAL ANSWER
𝑥=
𝑦=
𝑧=

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Financial Numeracy – ADIA004 and S3PACQ4 – Paper C – 2022

Question 6 [4]

Graph the following case-defined function:

1 if −4 ≤ 𝑥 < −1
𝑓(𝑥) = {𝑥 2 − 1 if −1 ≤ 𝑥 ≤ 1
ln 𝑥 if 𝑥>1

Question 7 [13]

Piet, a farmer, has 80 hectares of his farm available for planting maize and cabbages.
He must grow at least 10 hectares of maize and 20 hectares of cabbages to meet
demands. He prefers to plant more cabbages than maize but his work force and
equipment will only allow him to cultivate a maximum of three times the quantity of
cabbages to that of maize. The profit on maize is R800 per hectare and on cabbages
R500 per hectare. Piet generated the following constraints from his situation:

𝑥 + 𝑦 ≤ 80
𝑥 ≥ 10
Constraints: { 𝑦 ≥ 20
𝑦 ≤ 3𝑥
7.1 Sketch the Feasible Region described by the constraints. Clearly label the sketch.
[6]

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Financial Numeracy – ADIA004 and S3PACQ4 – Paper C – 2022

7.2 Find the coordinates of all the corner points of the Feasible Region (in any order).
[Round your answer to two (2) decimal places where applicable] [4]

COORDINATES
CORNER
POINT A
CORNER
POINT B
CORNER
POINT C
CORNER
POINT D

7.3 Determine the Objective Function for Profit. [1]

FINAL ANSWER

7.4 Determine the maximum possible profit.

[Round your answer to two (2) decimal places where applicable] [2]

FINAL ANSWSER
CORNER
POINT
COORDINATES
MAXIMUM
PROFIT

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Financial Numeracy – ADIA004 and S3PACQ4 – Paper C – 2022

Question 8 Do NOT use a financial calculator for this question. [7]

Given an interest rate of 9% per year, compounded annually, find the present value of
a generalized annuity of $3,000 due at the end of each year for four years, and $2,500
due thereafter at the end of each year for three years.

FINAL
ANSWER

QUESTION 9 Do NOT use a financial calculator for this question. [6]

Koko’s business, Supreme Cleaning, is growing very fast. She has just negotiated a 5-
year contract with “Lights, Camera, Action!”, one of South Africa’s largest movie houses,
to provide her services within Gauteng. As such, she has decided to expand het fleet of
bakkies needed to transport her staff and equipment.

Koko approached Superb Nissan in the North. She has determined that she would have
to purchase ten (10) Nissan NP200 (1.6 8V BASE) models to fulfil her booming business’
needs. Koko received a quote of R 139,900.00 per bakkie (discounted from R149,900
due to her large order).

As Supreme Cleaning banks with Pinnacle Industrial Bank, Koko receives a preferential
interest rate of 9%, compounded monthly, should she take up financing. Instalments are
payable at the end of each month. The following additional costs are also involved in
purchasing one (1) vehicle:

 Finance Admin Fee @  Licencing and Registration Fee @ R2,500.00

R1,100.00  Canopy @ R3,000.00
 Extended Warranty @
R3,500.00
Pinnacle Industrial Bank will allow Supreme Cleaning to purchase all ten (10) vehicles
through a single annuity.

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Financial Numeracy – ADIA004 and S3PACQ4 – Paper C – 2022

9.1 What is the total purchase amount which Superb Nissan requires for all ten (10)
bakkies, including additional costs? [1]

FINAL ANSWER

9.2 Pinnacle Industrial Bank requires a 10% deposit on the total purchase price as
determined in 9.1 above. Supreme Cleaning will be paying this deposit from their
savings. How much is this deposit? [1]

FINAL ANSWER

9.3 If Supreme Cleaning will be financing this purchase as a single annuity over 6
years, calculate the total monthly instalment to purchase this fleet of bakkies.
[Round your answer to two (2) decimal places] [2]

FINAL ANSWER

9.4 How much interest, in total, will Supreme Cleaning be paying on their 6-year fleet
loan? Use the result from 9.3 [rounded to two (2) decimal places] and also round
your final answer to two (2) decimal places. [2]

FINAL ANSWER

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Financial Numeracy – ADIA004 and S3PACQ4 – Paper C – 2022

QUESTION 10 Do NOT use a financial calculator for this question. [6]

Ranjit is a B.Com Marketing student at UJ. He has performed some market research
and has established that 4 out of 5 students that enter the UJ APK main entrance in the
morning would be willing to pay up to R12.00 for a cup of warm oats. Ranjit accordingly
decided to open Pit Stop next to the pedestrian entrance at UJ’s main gate and
calculates that he would require R40,000.00 to operate his business.

Ranjit approaches a well-known businessman, Mr. Mohamed Ismail, with a proposition.

In exchange for an upfront payment of R40,000.00, he would guarantee Mr. Ismail the
following cash flows:
YEAR CASH FLOW
2 R10,000.00
4 R20,000.00
6 R30,000.00

Assume an interest rate of 5%, compounded quarterly.

10.1 Determine the net present value (NPV) of the cash flows. [Round your answer
to two (2) decimal places] [5]

FINAL ANSWER

10.2 Is the investment profitable for Mr. Ismail? (YES OR NO) [1]

FINAL ANSWER

Question 11 ONLY use a financial calculator for this question. [7]

11.1 An effective rate of 11.57% per year is equivalent to what nominal rate
compounded monthly? [1]

ANSWER

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Financial Numeracy – ADIA004 and S3PACQ4 – Paper C – 2022

11.2 In 5 years, Steven’s investment of R13,000 grew to R21,302.01. Determine the

interest rate, compounded quarterly, for this investment. [1]

ANSWER

11.3 Bongani and his wife, Thandeka, is repaying a home loan of R1,550,000 at 10.5%
per year, compounded monthly, with monthly payments over 25 years.

a) Determine the monthly payment. [1]

ANSWER

b) Determine the balance outstanding after the 70th payment. [1]

ANSWER

c) Determine the interest contained in the 220th payment. [1]

ANSWER

11.4 South African Airways (SAA) wants to replace one of their Boeing 737-400
aircrafts in 5 years’ time with a Boeing 737-800 MAX. SAA estimate that they will
be able to sell off their current machine for R 400,000,000 whilst a new machine
is estimated at R 1,000,000,000. They want to set up a sinking fund for the new
purchase and use the scrap value of their current machine as deposit. Pinnacle
Industrial Bank offers SAA a savings option, where they will make payments at
the start of each month, earning interest at a rate of 10%, compounded monthly.
Determine the required monthly payment into this savings option. [1]

ANSWER

11.5 A friend presents you with an investment opportunity. If you invest R16,500 with
her now, she can guarantee the following cash flows:

Year 3 6 9 12
Cash R6,500 R1,500 R3,000 R8,750
Flow

If the effective discount rate is 2.5% per year, determine the Net Present Value. [1]

ANSWER

End of Assessment – 80 Total Marks

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Financial Numeracy – ADIA004 and S3PACQ4 – Paper C – 2022

Use this space if you want to redo a question. Clearly indicate at the question
that the answer is on Page 11.

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