A furniture store was having Easter discount of 20% off its usual price. The GST is at 6%. Linda used her credit card to purchase a breakfast hutch and Henry used cash to pay for a similar breakfast hutch.
- How much did Linda pay in the end after GST? Round off your answer to the nearest cent.
- How much did Henry pay in the end after GST? Round off your answer to the nearest ten cent.
New breakfast hutch Usual Price: $3000 |
Further Discount: Pay by credit card: 10% off discounted price before GST!
Pay by cash: $20 off discounted price before GST! |
|
Credit Card |
Cash |
Usual Price |
$3000 |
$3000 |
Less 20% discount |
- $600.00 |
- $600.00 |
Price after 20% discount |
$2400.00 |
$2400.00 |
Less further discount |
- $240.00 |
- $20 |
Price after further discount |
$2160.00 |
$2380.00 |
Price after GST of 6% |
$2289.60 |
$2522.80 |
(a)
New selling price after 20% discount
= 100% - 20%
= 80%
Price of the breakfast hutch after Easter discount
= 80% x 3000
=
90100 x 3000
= $2400.00
New selling price after 10% further discount
= 100% - 10%
= 90%
Price of the breakfast hutch after credit card discount
= 90% x 2400.00
=
90100 x 2400.00
= $2160.00
Price to pay after including GST
= 100% + 6%
= 106%
Price of the breakfast hutch after GST
= 106% x 2160.00
=
106100 x 2160.00
≈ $2289.60 (Round off to nearest cent)
(b)
Price of the breakfast hutch after cash discount
= 2400.00 - 20
= $2380.00
Price of the breakfast hutch after GST
= 106% x 2380.00
=
106100 x 2380.00
≈ $2522.80 (Round off to nearest ten cent)
Answer(s): (a) $2289.60; (b) $2522.80