The price of a laptop with 6% GST is $7420.
- 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 laptop with 6% GST
= 100% + 6%
= 106%
106% → $7420
1% → 7420 ÷ 106 = $70
100% → 100 x 70 = $7000
Price of the laptop with 14% GST
= 100% + 14%
= 114%
Amount that Adam has to pay
= 114% x 7000
=
114100 x 7000
= $7980
(b)
Amount more that Adam must pay because of the GST increase
= 7980 - 7420
= $560
Answer(s): (a) $7980; (b) $560