The price of a laptop with 5% GST is $7140.
- How much does Adam have to pay if the GST is increased to 6%?
- How much more must Adam pay because of the GST increase?
(a)
Price of the laptop with 5% GST
= 100% + 5%
= 105%
105% → $7140
1% → 7140 ÷ 105 = $68
100% → 100 x 68 = $6800
Price of the laptop with 6% GST
= 100% + 6%
= 106%
Amount that Adam has to pay
= 106% x 6800
=
106100 x 6800
= $7208
(b)
Amount more that Adam must pay because of the GST increase
= 7208 - 7140
= $68
Answer(s): (a) $7208; (b) $68