The price of a laptop with 7% GST is $4280.
- How much does Adam have to pay if the GST is increased to 13%?
- How much more must Adam pay because of the GST increase?
(a)
Price of the laptop with 7% GST
= 100% + 7%
= 107%
107% → $4280
1% → 4280 ÷ 107 = $40
100% → 100 x 40 = $4000
Price of the laptop with 13% GST
= 100% + 13%
= 113%
Amount that Adam has to pay
= 113% x 4000
=
113100 x 4000
= $4520
(b)
Amount more that Adam must pay because of the GST increase
= 4520 - 4280
= $240
Answer(s): (a) $4520; (b) $240