The price of a mobile phone with 7% GST is $1819.
- How much does Adam have to pay if the GST is decreased to 4%?
- How much saving does Adam enjoy as a result of the decrease in GST?
(a)
Price of the mobile phone with 7% GST
= 100% + 7%
= 107%
107% → $1819
1% → 1819 ÷ 107 = $17
100% → 100 x 17 = $1700
Price of the mobile phone with 4% GST
= 100% + 4%
= 104%
Amount that Adam has to pay
= 104% x 1700
=
104100 x 1700
= $1768
(b)
Saving that Adam enjoys
= 1819 - 1768
= $51
Answer(s): (a) $1768; (b) $51