Maths Literacy Paper 1 Revision Document for Grade 12
This revision document is designed to help you prepare for Grade 12 Mathematical
Literacy Paper 1, focusing on Term 2 content. In Paper 1, the questions remain within a
single context and focus on basic skills, multi-step calculations, and data interpretation.
1. Finance: Value Added Tax (VAT) and Inflation
Concepts
• VAT: In South Africa, VAT is a tax of 15% added to the price of goods and
services.
• VAT Inclusive: The price includes the tax. To find the VAT amount from an
inclusive price: Price ÷ 1.15 × 0.15.
• VAT Exclusive: The price before tax is added. To find the inclusive price:
Price × 1.15.
• Inflation: The rate at which the general level of prices for goods and services is
rising. It is calculated as a percentage increase over a period.
Problem 1 A laptop costs 𝑅 8 999.00 inclusive of 15% VAT. (a) Calculate the price of the
laptop before VAT was added. (b) If the inflation rate is 6% per annum, what will the
same laptop cost in one year?
Solution
•
(a) To find the VAT exclusive price (the price before tax):
VAT inclusive price
VAT exclusive price =
1.15
8 999.00
=
1.15
= 𝑅 7 825.21739. . .
Rounding to two decimal places: 𝑅 7 825.22
•
(b) To calculate the price after 6% inflation:
Increase = 8 999.00 × 0.06
= 𝑅 539.94
New Price = 8 999.00 + 539.94
= 𝑅 9 538.94
2. Finance: Tariff Systems (Water and Electricity)
Concepts South African municipalities use a sliding scale (block system) for water and
electricity. This means the more you use, the more you pay per unit.
This revision document is designed to help you prepare for Grade 12 Mathematical
Literacy Paper 1, focusing on Term 2 content. In Paper 1, the questions remain within a
single context and focus on basic skills, multi-step calculations, and data interpretation.
1. Finance: Value Added Tax (VAT) and Inflation
Concepts
• VAT: In South Africa, VAT is a tax of 15% added to the price of goods and
services.
• VAT Inclusive: The price includes the tax. To find the VAT amount from an
inclusive price: Price ÷ 1.15 × 0.15.
• VAT Exclusive: The price before tax is added. To find the inclusive price:
Price × 1.15.
• Inflation: The rate at which the general level of prices for goods and services is
rising. It is calculated as a percentage increase over a period.
Problem 1 A laptop costs 𝑅 8 999.00 inclusive of 15% VAT. (a) Calculate the price of the
laptop before VAT was added. (b) If the inflation rate is 6% per annum, what will the
same laptop cost in one year?
Solution
•
(a) To find the VAT exclusive price (the price before tax):
VAT inclusive price
VAT exclusive price =
1.15
8 999.00
=
1.15
= 𝑅 7 825.21739. . .
Rounding to two decimal places: 𝑅 7 825.22
•
(b) To calculate the price after 6% inflation:
Increase = 8 999.00 × 0.06
= 𝑅 539.94
New Price = 8 999.00 + 539.94
= 𝑅 9 538.94
2. Finance: Tariff Systems (Water and Electricity)
Concepts South African municipalities use a sliding scale (block system) for water and
electricity. This means the more you use, the more you pay per unit.
