The price of a tablet with 5% GST is $8820.
- How much does Adam have to pay if the GST is increased to 14%?
- How much more must Adam pay because of the GST increase?
(a)
Price of the tablet with 5% GST
= 100% + 5%
= 105%
105% → $8820
1% → 8820 ÷ 105 = $84
100% → 100 x 84 = $8400
Price of the tablet with 14% GST
= 100% + 14%
= 114%
Amount that Adam has to pay
= 114% x 8400
=
114100 x 8400
= $9576
(b)
Amount more that Adam must pay because of the GST increase
= 9576 - 8820
= $756
Answer(s): (a) $9576; (b) $756