The price of a laptop with 3% GST is $7210.
- How much does Adam have to pay if the GST is increased to 5%?
- How much more must Adam pay because of the GST increase?
(a)
Price of the laptop with 3% GST
= 100% + 3%
= 103%
103% → $7210
1% → 7210 ÷ 103 = $70
100% → 100 x 70 = $7000
Price of the laptop with 5% GST
= 100% + 5%
= 105%
Amount that Adam has to pay
= 105% x 7000
=
105100 x 7000
= $7350
(b)
Amount more that Adam must pay because of the GST increase
= 7350 - 7210
= $140
Answer(s): (a) $7350; (b) $140
