A furniture store was having Mid Year discount of 20% off its usual price. The GST is at 3%. Pamela used her credit card to purchase a breakfast hutch and Eric used cash to pay for a similar breakfast hutch.
- How much did Pamela pay in the end after GST? Round off your answer to the nearest cent.
- How much did Eric pay in the end after GST? Round off your answer to the nearest ten cent.
New breakfast hutch Usual Price: $750 |
Further Discount: Pay by credit card: 10% off discounted price before GST!
Pay by cash: $65 off discounted price before GST! |
|
Credit Card |
Cash |
Usual Price |
$750 |
$750 |
Less 20% discount |
- $150.00 |
- $150.00 |
Price after 20% discount |
$600.00 |
$600.00 |
Less further discount |
- $60.00 |
- $65 |
Price after further discount |
$540.00 |
$535.00 |
Price after GST of 3% |
$556.20 |
$551.10 |
(a)
New selling price after 20% discount
= 100% - 20%
= 80%
Price of the breakfast hutch after Mid Year discount
= 80% x 750
=
90100 x 750
= $600.00
New selling price after 10% further discount
= 100% - 10%
= 90%
Price of the breakfast hutch after credit card discount
= 90% x 600.00
=
90100 x 600.00
= $540.00
Price to pay after including GST
= 100% + 3%
= 103%
Price of the breakfast hutch after GST
= 103% x 540.00
=
103100 x 540.00
≈ $556.20 (Round off to nearest cent)
(b)
Price of the breakfast hutch after cash discount
= 600.00 - 65
= $535.00
Price of the breakfast hutch after GST
= 103% x 535.00
=
103100 x 535.00
≈ $551.10 (Round off to nearest ten cent)
Answer(s): (a) $556.20; (b) $551.10