Introduction
Inflation measures how much more expensive a set of goods and services has become over a certain period, usually a year. Inflation is the increase of the price of a typical basket of goods and services calculated over a period of time.
In this topic we investigate changes in the prices of goods and services and learn that inflation is a measure of the change in the purchasing power of money over time.
One of the realities of life is that the cost of goods is always increasing. You may hear on the radio that the consumer price index (CPI) has increased and is now 6%. This means that the cost of basic living expenses has gone up by 6%, or by R6 for every R100.
Economists work out the consumer price index as a measure of inflation by calculating the increase in a basket of goods representative of what most people spend their money on, such as food, clothing, and housing.
Because of inflation the cost of things you pay for go up. This means that you have R2 000, you cannot buy the same thing as years go by. Tis is what is meant by purchasing power, the power of the R2 000 goes down as inflation chases the price of goods and services up. Inflation rate is calculated as a percentage
Visuals of Inflation Graphs
Task
Task 1
- 27 August 2021
- marks total of 15
- After the short explain and a broader explanation of inflation rates measures try answer the questions that follow
Question 1
Last year Susie spent R500 0n catering for her family birthday dinner. It was such a success that she decided to make exactly the same meal this year. She went to the supermarket and bought the same ingredients, but was surprised to have to pay R535 this time around.
1.1 What was the percentage increase on the ingredients? 3
1.2 The CPI for that was 6%. How did the percentage increase on the goods she bought compared to the CPI? 2
1.3 How does an inflation rate of 6% per annum affect the purchasing power of R500? 3
1.4 A set of chairs increases in price from R17 355.75 to R19 943.99. calculate the inflation rate for thus period.? 3
Question 2
2. Previous year Jones spent R700 on buying new shoes. It was his pleasure that he decided to buy the same shoes this year. He went to the shoe shop to buy the same shoes, but he was shocked to have to pay R790 this time.
2.1 What was the percentage increase of the shoes? 2
- He paid 12.85% more for the same goods this year than he did last year. A box of jungle oats increases in price from R17.99 to R19.99.
2.2 Calculate the inflation rate for this period ? 2
Process
Topic
Inflation rates Measures
- Look at the portrait of this videos in expanding your knowledge about the topic .
- The Sources in the bottom are going to guide you based on how to use formulas of inflations measures .
Formulas:
Inflation Rate = current price - previous price ÷ previous price × 100%
Percentage Increase = amount of increase ÷ original amount spent × 100%
Purchasing Power = value of money last year ÷ value of money this year × 100%
The Mathematical Literacy curriculum includes topics such as inflation, taxation, tariff systems, health issues, household bills, exchange rates, maps and scale drawing, among many others . Of interest to this study is the concept of inflation which has traditionally not been taught in a mathematics class, but is a context in which the elementary mathematics concept of percentage increase and decrease can be applied.
What is Inflation: Inflation is the measure of change in the purchasing/buying power of money over time. Inflation rate is the percentage change in the cost of goods from one year (or month) to the next
General formula: Inflation rate = 100 Old value New value - Old value Effects of inflation ✓
Reduced purchasing/buying power ✓ Weakening of currency against major currency like US dollar
✓ Lower production in manufacturing industries
- Lok at the Example below .
Evaluation
Memo.
- Questions Required you to use appropriate formulas
- Show the steps of your calculations because they are for marks
Question 1
1.1 Percentage Increase = amount of increase ÷ original amount spent × 100%✓
= R35 ÷ R500 × 100%✓
= 7%✓ 3 marks
1.2CPI inflation = 6%. The price of her actual goods increased by 7%.✓ The price of the goods she bought increased by 1% more than the average CPI rate for this year.✓ 2 marks
1.3 Purchasing Power = value of money last year ÷ value of money this year × 100%
= R500 ÷ R535 × 100%✓
= 94,4579%✓
≈ 94%✓ 3 marks
1.4Inflation Rate = current price - previous price ÷ previous price × 100%
= R19 943.99 – R17 355.75 ÷ R17 355.75 × 100%✓
= R2 588.24 ÷ R17 355.75 × 100%✓
= 14.91✓ 3 marks
Question 2
2.1 % increase = amount of increase ÷ original amount spent × 100%
= R90 ÷ R700 × 100✓
= 12.85%✓ 2 marks
2.2 Inflation Rate = current price - previous price ÷ previous price × 100%
= R19.99 – R17.99 ÷ R17.99 × 100%✓
= 11.1%✓ 2 marks
the total Marks of 15 .
Conclusion
Before doing the the take home Task please watch the video below again as the are explain some of the terms and points which can be resource . we will do the correction of the task 2 in the classroom .
Task 2 .
- NB . use appropriate formulas and show your calculation .
1.1If the price of one liter of petrol was R13,51 in April 2017 and in April 2018 is R14,71,
calculate the inflation rate. ? 3 marks
1.2 If a loaf of brown bread cost R12,49 in January 2017 and the inflation rate
for January 2016 was 6,2%, calculate the cost of brown bread in January
2016. ? 3 marks
1.3 What was the original price of a chocolate bar if a new price is R15,99 and
has increased by 2,4%? 3 marks
1.4Mercedes VITO could be bought, brand new, for R307 230 in 2013. In 2014
the cost of a new VITO was R321 993 and in 2015 it was R335 370.
Which year showed the highest inflation rate? 6 marks
Credits
Resources and media
- learn.mindset.africa/sites/default/files/resourcelib/emshare-show-note-asset/3056_fdoc.pdf
- Grade 12 mindgap .
- http://doer.col.org/handle/123456789/7549
Teacher Page
NB. The purpose of using WebQuest is to encourage students to use information rather than gathering it and participate in meaningful classroom discussions. WebQuest supports critical thinking through analyzing, creating, and evaluating. Also, it integrates technology into learning and foster cooperative learning.
- For enquires Please contact Mr Ngqwamba on whatsapp 0671261684, or contact me via email at 219021139t.ngqwamba@gmail.com.
Remember practiceses are effective techniques to do well in Mathematical Literacy Goodluck .