The price of a mobile phone with 6% GST is $4240.
- How much does Adam have to pay if the GST is increased to 7%?
- How much more must Adam pay because of the GST increase?
(a)
Price of the mobile phone with 6% GST
= 100% + 6%
= 106%
106% → $4240
1% → 4240 ÷ 106 = $40
100% → 100 x 40 = $4000
Price of the mobile phone with 7% GST
= 100% + 7%
= 107%
Amount that Adam has to pay
= 107% x 4000
=
107100 x 4000
= $4280
(b)
Amount more that Adam must pay because of the GST increase
= 4280 - 4240
= $40
Answer(s): (a) $4280; (b) $40