The price of a television set with 4% GST is $4680.
- How much does Adam have to pay if the GST is increased to 5%?
- How much more must Adam pay because of the GST increase?
(a)
Price of the television set with 4% GST
= 100% + 4%
= 104%
104% → $4680
1% → 4680 ÷ 104 = $45
100% → 100 x 45 = $4500
Price of the television set with 5% GST
= 100% + 5%
= 105%
Amount that Adam has to pay
= 105% x 4500
=
105100 x 4500
= $4725
(b)
Amount more that Adam must pay because of the GST increase
= 4725 - 4680
= $45
Answer(s): (a) $4725; (b) $45