The price of a television set with 6% GST is $8480.
- 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 television set with 6% GST
= 100% + 6%
= 106%
106% → $8480
1% → 8480 ÷ 106 = $80
100% → 100 x 80 = $8000
Price of the television set with 7% GST
= 100% + 7%
= 107%
Amount that Adam has to pay
= 107% x 8000
=
107100 x 8000
= $8560
(b)
Amount more that Adam must pay because of the GST increase
= 8560 - 8480
= $80
Answer(s): (a) $8560; (b) $80