The price of a laptop with 5% GST is $1680.
- 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 laptop with 5% GST
= 100% + 5%
= 105%
105% → $1680
1% → 1680 ÷ 105 = $16
100% → 100 x 16 = $1600
Price of the laptop with 7% GST
= 100% + 7%
= 107%
Amount that Adam has to pay
= 107% x 1600
=
107100 x 1600
= $1712
(b)
Amount more that Adam must pay because of the GST increase
= 1712 - 1680
= $32
Answer(s): (a) $1712; (b) $32
