The price of a mobile phone with 5% GST is $3150.
- How much does Adam have to pay if the GST is increased to 9%?
- How much more must Adam pay because of the GST increase?
(a)
Price of the mobile phone with 5% GST
= 100% + 5%
= 105%
105% → $3150
1% → 3150 ÷ 105 = $30
100% → 100 x 30 = $3000
Price of the mobile phone with 9% GST
= 100% + 9%
= 109%
Amount that Adam has to pay
= 109% x 3000
=
109100 x 3000
= $3270
(b)
Amount more that Adam must pay because of the GST increase
= 3270 - 3150
= $120
Answer(s): (a) $3270; (b) $120