The price of a stereo system with 4% GST is $3120.
- How much does Adam have to pay if the GST is increased to 7%?
- How much more must Adam pay because of the GST increase?
(a)
Price of the stereo system with 4% GST
= 100% + 4%
= 104%
104% → $3120
1% → 3120 ÷ 104 = $30
100% → 100 x 30 = $3000
Price of the stereo system with 7% GST
= 100% + 7%
= 107%
Amount that Adam has to pay
= 107% x 3000
=
107100 x 3000
= $3210
(b)
Amount more that Adam must pay because of the GST increase
= 3210 - 3120
= $90
Answer(s): (a) $3210; (b) $90