The price of a stereo system with 5% GST is $3780.
- 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 stereo system with 5% GST
= 100% + 5%
= 105%
105% → $3780
1% → 3780 ÷ 105 = $36
100% → 100 x 36 = $3600
Price of the stereo system with 14% GST
= 100% + 14%
= 114%
Amount that Adam has to pay
= 114% x 3600
=
114100 x 3600
= $4104
(b)
Amount more that Adam must pay because of the GST increase
= 4104 - 3780
= $324
Answer(s): (a) $4104; (b) $324