The price of a television set with 5% GST is $1470.
- How much does Adam have to pay if the GST is increased to 13%?
- How much more must Adam pay because of the GST increase?
(a)
Price of the television set with 5% GST
= 100% + 5%
= 105%
105% → $1470
1% → 1470 ÷ 105 = $14
100% → 100 x 14 = $1400
Price of the television set with 13% GST
= 100% + 13%
= 113%
Amount that Adam has to pay
= 113% x 1400
=
113100 x 1400
= $1582
(b)
Amount more that Adam must pay because of the GST increase
= 1582 - 1470
= $112
Answer(s): (a) $1582; (b) $112