A furniture store was having Mother's Day discount of 20% off its usual price. The GST is at 3%. Zara used her credit card to purchase a breakfast hutch and Neave used cash to pay for a similar breakfast hutch.

1. How much did Zara pay in the end after GST? Round off your answer to the nearest cent.
2. How much did Neave pay in the end after GST? Round off your answer to the nearest ten cent.

New breakfast hutch Usual Price: $1000

Further Discount: Pay by credit card: 10% off discounted price before GST! Pay by cash: $85 off discounted price before GST!

	Credit Card	Cash
Usual Price	$1000	$1000
Less 20% discount	- $200.00	- $200.00
Price after 20% discount	$800.00	$800.00
Less further discount	- $80.00	- $85
Price after further discount	$720.00	$715.00
Price after GST of 3%	$741.60	$736.50

(a)
New selling price after 20% discount
= 100% - 20%
= 80%

Price of the breakfast hutch after Mother's Day discount
= 80% x 1000
= ⁹⁰₁₀₀ x 1000
= $800.00

New selling price after 10% further discount
= 100% - 10%
= 90%

Price of the breakfast hutch after credit card discount
= 90% x 800.00
= ⁹⁰₁₀₀ x 800.00
= $720.00

Price to pay after including GST
= 100% + 3%
= 103%

Price of the breakfast hutch after GST
= 103% x 720.00 
= ¹⁰³₁₀₀ x 720.00 
≈ $741.60 (Round off to nearest cent)

(b)
Price of the breakfast hutch after cash discount
= 800.00 - 85
= $715.00

Price of the breakfast hutch after GST
= 103% x 715.00 
= ¹⁰³₁₀₀ x 715.00 
≈ $736.50 (Round off to nearest ten cent)

Answer(s): (a) $741.60; (b) $736.50