Below is a deon's municipality water expenses.study the municipality rates of water and answer the question below:

Question

Number of kilolitres. Amount per kl excluding VAT
0 to 6 kl. R 0.00
6 to 10 kl. 6.40
11 to 20 kl. 10.60
21 to 35 kl. 16.50
36 to 50 kl. 19.80
More than 50 kl. 24.50
3.1. deon's household used 33 kl of water in July.determine how much he has to pay for excluding vat.
3.2.how much will he pay if vat is included vat at 15%

Answer 1

3.1. Deon used 33 kl of water, which falls into the "21 to 35 kl" category.

The amount he has to pay excluding VAT is R 16.50 per kl.

So, the total amount he has to pay excluding VAT is 33 kl * R 16.50/kl = R 544.50.

3.2. If VAT is included at a rate of 15%, the total amount Deon has to pay will be the sum of the amount excluding VAT and the VAT amount.

VAT amount = 15% of the amount excluding VAT

VAT amount = 15/100 * R 544.50 = R 81.68

Total amount Deon has to pay including VAT = Amount excluding VAT + VAT amount

Total amount = R 544.50 + R 81.68 = R 626.18