The price of a massage chair with 4% GST is $8840.
- How much does Adam have to pay if the GST is increased to 10%?
- How much more must Adam pay because of the GST increase?
(a)
Price of the massage chair with 4% GST
= 100% + 4%
= 104%
104% → $8840
1% → 8840 ÷ 104 = $85
100% → 100 x 85 = $8500
Price of the massage chair with 10% GST
= 100% + 10%
= 110%
Amount that Adam has to pay
= 110% x 8500
=
110100 x 8500
= $9350
(b)
Amount more that Adam must pay because of the GST increase
= 9350 - 8840
= $510
Answer(s): (a) $9350; (b) $510