The price of a television set with 5% GST is $2520.
- How much does Adam have to pay if the GST is increased to 12%?
- How much more must Adam pay because of the GST increase?
(a)
Price of the television set with 5% GST
= 100% + 5%
= 105%
105% → $2520
1% → 2520 ÷ 105 = $24
100% → 100 x 24 = $2400
Price of the television set with 12% GST
= 100% + 12%
= 112%
Amount that Adam has to pay
= 112% x 2400
=
112100 x 2400
= $2688
(b)
Amount more that Adam must pay because of the GST increase
= 2688 - 2520
= $168
Answer(s): (a) $2688; (b) $168