The price of a computer with 8% GST is $2160.
- 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 computer with 8% GST
= 100% + 8%
= 108%
108% → $2160
1% → 2160 ÷ 108 = $20
100% → 100 x 20 = $2000
Price of the computer with 9% GST
= 100% + 9%
= 109%
Amount that Adam has to pay
= 109% x 2000
=
109100 x 2000
= $2180
(b)
Amount more that Adam must pay because of the GST increase
= 2180 - 2160
= $20
Answer(s): (a) $2180; (b) $20