The price of a mobile phone with 4% GST is $6760.
- How much does Adam have to pay if the GST is increased to 10%?
- How much more must Adam pay because of the GST increase?
(a)
Price of the mobile phone with 4% GST
= 100% + 4%
= 104%
104% → $6760
1% → 6760 ÷ 104 = $65
100% → 100 x 65 = $6500
Price of the mobile phone with 10% GST
= 100% + 10%
= 110%
Amount that Adam has to pay
= 110% x 6500
=
110100 x 6500
= $7150
(b)
Amount more that Adam must pay because of the GST increase
= 7150 - 6760
= $390
Answer(s): (a) $7150; (b) $390