Banking, Interest, and Taxation (Grade 11 NSC Matric Mathematical Literacy): Flashcards
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Definition of inflation
Definition of inflation
General increase in price of goods and services over time
Rate of inflation expressed as
Rate of inflation expressed as
Percentage - average increase in cost from one period to another
Effect of inflation on buying power
Effect of inflation on buying power
You can buy less with same money unless income increases too
Formula: New Price after inflation
Formula: New Price after inflation
ext{Original Price} imes (1 + rac{ ext{Rate}}{100})
Compound calculation in inflation
Compound calculation in inflation
Each year uses previous year's inflated price as base
Formula: Percentage change
Formula: Percentage change
rac{ ext{New - Old}}{ ext{Old}} imes 100
Multi-year inflation principle
Multi-year inflation principle
Use already-inflated price from previous year as starting point
Price difference formula
Price difference formula
New Price - Original Price
Purpose of food baskets in tracking
Purpose of food baskets in tracking
Represent essential household purchases made regularly
Key exam strategy for inflation
Key exam strategy for inflation
Identify if calculating new price or inflation rate