The price of a laptop with 5% GST is $4830.
- How much does Adam have to pay if the GST is increased to 8%?
- How much more must Adam pay because of the GST increase?
(a)
Price of the laptop with 5% GST
= 100% + 5%
= 105%
105% → $4830
1% → 4830 ÷ 105 = $46
100% → 100 x 46 = $4600
Price of the laptop with 8% GST
= 100% + 8%
= 108%
Amount that Adam has to pay
= 108% x 4600
=
108100 x 4600
= $4968
(b)
Amount more that Adam must pay because of the GST increase
= 4968 - 4830
= $138
Answer(s): (a) $4968; (b) $138