The price of a mobile phone with 8% GST is $6480.
- How much does Adam have to pay if the GST is increased to 12%?
- How much more must Adam pay because of the GST increase?
(a)
Price of the mobile phone with 8% GST
= 100% + 8%
= 108%
108% → $6480
1% → 6480 ÷ 108 = $60
100% → 100 x 60 = $6000
Price of the mobile phone with 12% GST
= 100% + 12%
= 112%
Amount that Adam has to pay
= 112% x 6000
=
112100 x 6000
= $6720
(b)
Amount more that Adam must pay because of the GST increase
= 6720 - 6480
= $240
Answer(s): (a) $6720; (b) $240