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2.1 State TWO ways of calculating interest on credit agreements - NSC Consumer Studies - Question 2 - 2022 - Paper 1
Question 2
2.1 State TWO ways of calculating interest on credit agreements. 2.2 Define the term grey goods/parallel imports. 2.3 State THREE ways in which consumers can save ... show full transcript
Worked Solution & Example Answer:2.1 State TWO ways of calculating interest on credit agreements - NSC Consumer Studies - Question 2 - 2022 - Paper 1
Step 1
2.1 State TWO ways of calculating interest on credit agreements.
Answer
The two ways of calculating interest on credit agreements are:
- Simple interest: This is calculated only on the original principal amount.
- Compound interest: This is calculated on the principal amount as well as on the interest that has been added to it over time.
Step 2
Step 3
2.3 State THREE ways in which consumers can save water when gardening.
Answer
Consumers can save water when gardening by:
- Using grey water: Utilizing water from the overflow pipe of the geyser.
- Watering plants wisely: Water during the cooler parts of the day and avoid watering when it is windy.
- Choosing appropriate plants: Planting indigenous or drought-resistant plants.
Step 4
2.4 Explain the following taxes:
Answer
2.4.1 VAT (Value-Added Tax): This is a tax that adds a certain percentage to the price of goods and services at each stage of production.
2.4.2 Excise Duty (Sin Tax): This is a specific tax on certain goods, such as alcohol or tobacco, aimed at reducing consumption.
Step 5
2.5 State THREE ways of saving electricity when using a refrigerator.
Answer
Three ways to save electricity when using a refrigerator include:
- Allowing air circulation: Ensuring there is enough space for air to circulate inside.
- Avoiding overloading: Not overcrowding the refrigerator, which can obstruct airflow.
- Regularly maintaining the appliance: Vacuuming the coils and keeping the door sealed tightly.
Step 6
2.6 Discuss what municipalities can do to reduce crime and make communities safer to live in.
Answer
Municipalities can take several actions to reduce crime, such as:
- Implementing streetlights: Installing streetlights in dark areas to improve visibility.
- Community policing: Engaging with the community to build trust and cooperation.
- Maintaining public spaces: Keeping parks and areas clean reduces opportunities for crime.
Step 7
2.7 Explain how a tiered-level/multi-level marketing scheme works.
Answer
A tiered-level or multi-level marketing scheme operates by recruiting individuals who sell a product and recruit others. Each member can earn commissions based on sales generated by their recruits, creating multiple levels of income potential.
Step 8
2.8 Read the scenario below and answer the questions that follow.
Answer
2.8.1 Explain the term contract: A contract is a legal agreement between two parties where one party agrees to provide something of value in exchange for something else.
2.8.2 Explain how the cooling-off period protected Ayanda when she cancelled the alarm system contract: The cooling-off period allowed Ayanda to cancel the contract within a specified timeframe without incurring any penalties, giving her time to reconsider her decision.
Step 9
2.9 Discuss the advantages for the natural environment when using gas.
Answer
Using gas has natural environmental advantages because:
- Lower emissions: Gas emits fewer pollutants compared to traditional fossil fuels.
- Energy efficiency: Gas is more efficient in terms of energy output, reducing the overall carbon footprint.
Step 10
2.10 Describe the impact that increasing fuel prices have on consumers' rights to satisfy their basic needs.
Answer
Increasing fuel prices can severely impact consumers as it raises the cost of daily transportation and living expenses. Less disposable income may force consumers to opt for lower-quality goods, and they may face challenges in meeting basic needs such as food or healthcare.