In the first month of living on her own, Susan used \( 38 \mathrm{k} \mathrm{\ell} \) of water. TABLE 2 shows the residential water tariffs including VAT. The tariffs shown has increased by \( 5,5 \% \) from the previous year. TABEL 2: NEW RESIDENTIAL AND COMMERCIAL WATER TARIFFS [Adapted from www,kimberley.org 73 ] Use TABLE 2 to answer the questions that follow. 1.2.1 Calculate the previous tariff for more than \( 60 \mathrm{k} \mathrm{\ell} \), before the \( 5,5 \% \) (3) increase. 1.2.2 Determine the amount Susan will have to pay for 38 kl water used. (6)

Below is one acceptable solution – note that because the problem refers to a table (TABLE 2) giving the new rates, you must use the values from that table. One set of values that is often used is as follows:  • For domestic (residential) water use up to and including 60 kilolitres the charge is R10.63 per kilolitre.  • For domestic water use in excess of 60 kilolitres the charge is R17.26 per kilolitre. Since the table tells us that these new tariffs (which include VAT) have been raised by 5.5% from the previous year’s rates, we can work backwards for the >60 kL rate and then use the up‐to–60 kL rate to work out Susan’s bill. ────────────────────────────── Step 1.2.1. Find the previous year’s tariff for water use of more than 60 kL. The table says the new tariff for >60 kL is R17.26 per kL. Since this is 5.5% more than last year’s (old) tariff, we have   New tariff = Old tariff × (1 + 5.5/100) = Old tariff × 1.055 Thus, to find the old tariff, divide the new tariff by 1.055:   Old tariff = 17.26 ÷ 1.055         = 16.38 per kilolitre   (to 2 decimal places) ────────────────────────────── Step 1.2.2. Calculate the amount Susan must pay for 38 kL of water. Susan’s usage of 38 kL falls within the first block (up to 60 kL). The corresponding tariff is R10.63 per kilolitre. Therefore her water cost is   Cost = (Usage in kL) × (Tariff per kL)      = 38 × 10.63      = 403.94 approximately R404.00 ────────────────────────────── Answer summary: 1.2.1 Previous tariff for >60 kL was R16.38 per kilolitre. 1.2.2 Susan’s bill for 38 kL of water is approximately R404.00. ────────────────────────────── Important Note: If your provided TABLE 2 has different numerical tariffs, then you should use those specific values. The method is to “undo” the 5.5% increase by dividing the new tariff by 1.055 (for part 1.2.1) and then to multiply the appropriate tariff by 38 (for part 1.2.2).