The price of a computer with 5% GST is $5460.
- How much does Adam have to pay if the GST is increased to 14%?
- How much more must Adam pay because of the GST increase?
(a)
Price of the computer with 5% GST
= 100% + 5%
= 105%
105% → $5460
1% → 5460 ÷ 105 = $52
100% → 100 x 52 = $5200
Price of the computer with 14% GST
= 100% + 14%
= 114%
Amount that Adam has to pay
= 114% x 5200
=
114100 x 5200
= $5928
(b)
Amount more that Adam must pay because of the GST increase
= 5928 - 5460
= $468
Answer(s): (a) $5928; (b) $468