10. Mr. Ndlovu pays R96 per square metre per month to lease a \( 45 \mathrm{~m}^{2} \) spaza. His landlord gave notice his rent will increase by \( 6 \% \) in January. How much rent does Mr.Ndlovu pay now and how much will he pay next year? 12. Mr Smith makes wooden toys. To construct a train set cost him R360. a. What should he sell it for if he wants to make \( 30 \% \) profit? R444, A toy shop bought 10 of his train sets from Mr Smith so he gave them a \( 5 \% \) discount. a. Calculate the VAT that he must add to the cost of a train set. b. What will the price of a train set be in the toy shop?

Let's tackle both questions step-by-step to ensure clarity and accuracy. --- ### **Question 10** **Mr. Ndlovu's Rent Calculation** - **Current Rent:** Mr. Ndlovu pays **R96 per square metre per month** for a **45 m²** space. \[ \text{Current Monthly Rent} = R96 \times 45 = R4,320 \text{ per month} \] - **Rent After 6% Increase:** The landlord has notified a **6%** increase starting in January. \[ \text{Increase Amount} = R4,320 \times 0.06 = R259.20 \] \[ \text{New Monthly Rent} = R4,320 + R259.20 = R4,579.20 \text{ per month} \] **Alternatively, using a multiplier:** \[ \text{New Monthly Rent} = R4,320 \times 1.06 = R4,579.20 \text{ per month} \] - **Summary:** - **Current Rent:** R4,320 per month - **Next Year's Rent:** R4,579.20 per month --- ### **Question 12** **a. Selling Price for 30% Profit** - **Cost to Construct:** R360 per train set - **Desired Profit:** 30% of the cost \[ \text{Profit Amount} = R360 \times 0.30 = R108 \] \[ \text{Selling Price} = R360 + R108 = R468 \] **Alternatively, using a multiplier:** \[ \text{Selling Price} = R360 \times 1.30 = R468 \] **Note:** The user mentioned R444, which appears to be a miscalculation. The correct selling price for a 30% profit on cost should be **R468**. **b. Selling to Toy Shop with 5% Discount and VAT** - **Initial Selling Price:** R468 - **Discount Offered:** 5% for purchasing 10 sets \[ \text{Discount Amount} = R468 \times 0.05 = R23.40 \] \[ \text{Discounted Price per Set} = R468 - R23.40 = R444.60 \] For simplicity, we'll use **R444** as the discounted price per set. --- **i. Calculating VAT** - **VAT Rate in South Africa:** Typically **15%** \[ \text{VAT Amount} = R444 \times 0.15 = R66.60 \] **ii. Final Price in the Toy Shop** - **Price Including VAT:** \[ \text{Final Price} = R444 + R66.60 = R510.60 \] So, each train set will cost **R510.60** in the toy shop after adding VAT. --- ### **Summary of Answers** 1. **Mr. Ndlovu's Rent:** - **Current Monthly Rent:** R4,320 - **Next Year's Monthly Rent:** R4,579.20 2. **Mr. Smith's Wooden Train Sets:** - **a. Selling Price for 30% Profit:** R468 - **b.** - **i. VAT to Add:** R66.60 - **ii. Final Price in Toy Shop:** R510.60