Question
3. The Habib family's water and electricity bill for April 2014 was R1 050. If the inflation rate for April 2015 was -2,3\%, what could the Habib's expect to pay for water and electricity in April 2015?
Ask by Mitchell Vargas. in South Africa
Mar 07,2025
Upstudy AI Solution
Tutor-Verified Answer
Answer
The Habib family can expect to pay approximately R1,025.85 for water and electricity in April 2015.
Solution
To find the expected water and electricity bill for the Habib family in April 2015, we need to calculate the inflation rate and then apply it to the bill for April 2014.
Given:
- The Habib family's water and electricity bill for April 2014 was R1,050.
- The inflation rate for April 2015 was -2.3%.
To calculate the expected bill for April 2015:
1. Calculate the inflation rate as a decimal: -2.3% = -0.023
2. Apply the inflation rate to the bill for April 2014 to find the expected bill for April 2015.
Let's calculate the expected bill for April 2015.
Calculate the value by following steps:
- step0: Calculate:
\(1050\left(1-0.023\right)\)
- step1: Subtract the numbers:
\(1050\times 0.977\)
- step2: Multiply the numbers:
\(1025.85\)
The expected water and electricity bill for the Habib family in April 2015 would be approximately R1,025.85.
Answered by UpStudy AI and reviewed by a Professional Tutor
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Simplify this solution Extra Insights
With an inflation rate of -2.3%, the cost would actually decrease. To calculate the expected bill, we can apply the formula for inflation adjustment. So, R1 050 x (1 - 0.023) = R1 050 x 0.977 = approximately R1 027.36. The Habibs could expect to pay around R1 027.36 for their water and electricity in April 2015, a slight decrease from the previous year! Here’s a fun fact: This negative inflation rate is often referred to as deflation, which can occur during economic downturns when consumer demand decreases. It's interesting how the economic climate can affect our everyday bills!
