The price of a laptop with 2% GST is $6630.
- 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 2% GST
= 100% + 2%
= 102%
102% → $6630
1% → 6630 ÷ 102 = $65
100% → 100 x 65 = $6500
Price of the laptop with 5% GST
= 100% + 5%
= 105%
Amount that Adam has to pay
= 105% x 6500
=
105100 x 6500
= $6825
(b)
Amount more that Adam must pay because of the GST increase
= 6825 - 6630
= $195
Answer(s): (a) $6825; (b) $195