Introduction
Task
Read the notes below on Tariffs and Tariff systems.
Tariff systems `
Tariffs
A list or schedule of pre-determined prices for services like trains, busses, and electrical usage.
Tariffs are pre-determined rates that are used to determine how much money you owe for a given service. For example, the total amount of money you owe on your municipal bill is calculated using predetermined tariffs. A tariff usually includes a unit of payment with a unit of measurement - for example cell phone bills are charged in cents or Rands per minute (R/minute) and electricity is charged in cents per kilowatt hour or c/kWh. Telkom charges monthly landline rental in Rands per month. In this section you will work with different tariff systems, learn how to calculate costs using given tariffs and how to draw and interpret graphs of various tariff systems.
Municipal tariffs
Municipal tariffs include tariffs for electricity, water and refuse removal. They differ from one city to the next, but generally speaking, the more electricity or water you use in a month, the more expensive it is per unit. Sometimes municipal tariffs are also called “rates”. Your municipal bill also usually includes a monthly property rate based on the municipal value of your house - again, the more your house is worth, the more you will pay in rates.
Telephone tariffs
Fixed phone line and cell phone service providers also commonly charge you for calls using tariffs. The tariff cost can be influenced by factors like the distance of the call (e.g., calls overseas are always more expensive than local calls) and the time of day (most service providers offer cheaper rates in the evenings, depending on which phone package you use).
Transport tariffs
Transport tariffs work much the same as municipal and phone tariffs. They may apply to train travel, busses, and taxis. Generally, transport tariffs are charged per unit of distance, and the further you need to travel, the higher the tariff and therefore the more expensive your ticket. Like some basic foods, transport fares for taxis, buses and trains in South Africa are exempt from VAT.
Process
Test your knowledge on what you learnt on tariff systems by completing the activities.
EXERCISE 1
The City of Durban's eThekwini Municipality charges the following tariffs for domestic water usage in 2013, for properties valued at more than R250 000
|
Price per kilo liter, excluding VAT |
|
|
0 kl to 9 kl |
R9,50 |
|
from 9 kl to 25 kl |
R11,22 |
|
From 25 kl to 30 kl |
R14,95 |
|
from 30 kl to 45 kl |
R23,05 |
|
more than 45 kl |
R25,36 |
1. Megan's monthly water consumption is 12 kl. Calculate her monthly water costs, excluding VAT.
2.Gilbert's monthly water consumption is 32 kl.
2.1 Calculate what his monthly water bill will be, including VAT.
2.2 Calculate what Gilbert will pay on average, per kilolitre of water.
EXERCISE 2
1. A local cellular provider charges the following for a standard contract:
· Monthly subscription: R100
· Mandatory itemised billing: R22
This monthly contract includes R140 worth of airtime and R40 worth of free, local SMS's.
Calls and SMSs are charged for using the tariffs given below. This service provider uses per second billing, so the tariff is Rands per 60 seconds of call time, even if those 60 seconds are split over two or more calls. Assume that these tariffs, or rates, and the monthly subscription are VAT inclusive. (An SMS is a text message, and an MMS is a text and data message, that may include a photo, for example).
|
Rate per minute for the first 5 minutes of the day |
R 1,95 |
|
Rate per min (60 sec) thereafter |
R 1,55 |
|
Calls to the same network |
R 0,99 per 60 seconds |
|
International SMS |
R 1,20 per SMS |
|
SMS |
R 0,60 per SMS |
|
MMS |
R 0,75 per MMS |
1. Alfred has a contract like the one above. Assuming he does not use more than R140 airtime in a month and R40 worth of SMS's, what will his monthly cell phone bill cost?
2. On the first day of the month, the first call Alfred makes is to his father (on a different network) and they talk for 2 minutes. How much will this call cost Alfred?
3. On the same day, Alfred then calls his friend, Ivan. They talk for 4 minutes. How much will this second call cost him?
4. Later that afternoon, Alfred checks his phone and sees he has made 9 minutes, 25 seconds worth of calls.
a) How many seconds is this?
b) If he now calls his friend Azra, who is on the same network, and they talk for 360 seconds, how much will the call cost him?
EXERCISE 3
|
Zone |
Single |
Return |
Weekly |
Monthly |
|
1 - 19 km |
4,00 |
7,50 |
22,00 |
81,50 |
|
20 - 29 km |
5,00 |
9,50 |
27,50 |
97,00 |
|
30 - 39 km |
6,00 |
11,50 |
32,50 |
112,00 |
|
40 - 49 km |
7,50 |
14,50 |
34,00 |
123,00 |
|
>> 50 km |
9,50 |
18,50 |
38,50 |
140,00 |
1. Chuma travels 15 km on the train every day to school and back again. She buys a single ticket for every trip that she makes.
a) how many trips will Chuma make (to school and back) in one month (4 weeks)?
b) How much will this cost her if she buys single tickets?
c) How much cheaper will a monthly ticket be?
Evaluation
Check the memorandum and do corrections
MEMORANDUM
Exercise 1
1. 0-9 kl = R9,50 x 9 = R85,50
9-25kl= 3kl = R11,22 x 3 = R33,66
R85,50 + R33,66 = R119,16
2.1 0-9kl = R9,50 x 9 = R85,50
9-25kl= R11,22 x 16 = R179,52
25kl- 30kl= 5kl = R14,95 x 5 = R74,75
30kl - 45kl= 2kl = R23,05 x 2 = R46,10
R85,50 + R179,52 = R74,75 + R46,10 = R385,87 x 14/100
= R54 + R385,87
= R439,89
2.2 R439,89 / 32 = R13, 74
Exercise 2
2.1
1) R100 +R22 = R122
2) R1,95 x 2 = R3,90
3) R3 x R1,95/ 1 1 x R1,55 = R7,40
4 a) 9 x 60 = 540 + 25 = 565 seconds
b) 360 / 60 = 6 x 0,99 = R5,94
Exercise 3
1 a) 2 x 5 x 4 = 40 trips
b) 4 x 40 = R160
c) R160 - R81,50 = R78,50 cheaper
Conclusion
Write a paragraph of 4-8 lines on what you have learnt about tariffs and its relevance in our daily lives.