Interest from Investments Income from Royalties EXERCISE 6 1. Kasy drew up a household budget: Income Salary Expenditure R19 456 Fixed expenses: R230 Rent R6 500 R10 000 Car payment R2 999 Fixed deposit R3 000 Variable Expenses: Electricity R555 Food R5 000 R300 R225 R130 R1 500 Total income: Money left over: Landline (internet) Cellphone Water, sewage Entertainment Irregular Expenses: Geyser repair Total expenditure: R2 000 1. a) Fill in Kasy's total income and total expenditure (from the previous unit). Did Kasy's budget exceed her income? If not, how much money has she got left for additional saving or for miscellaneous expenses? 1. b) It makes economic sense for your rent not to exceed 30% of your income. Does Kasy's rent stick to this rule of thumb? Explain, and show your calculations. 1. c) Buying a car on terms locks you into a 3-, 4- or 5-year repayment plan. Kasy bought her car on a 4-year plan. How much will she pay over the 4-year period for the car? 1. d) What irregular expense is Kasy budgeting for? What percentage of her income is this irregular expense? 1. e) Does Kasy have income left for luxury items? If so, list some items she may consider buying. 1. f) Kasy earns some money in the form of royalties. What are royalties?
