The price of a massage chair with 4% GST is $6240.
- 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 massage chair with 4% GST
= 100% + 4%
= 104%
104% → $6240
1% → 6240 ÷ 104 = $60
100% → 100 x 60 = $6000
Price of the massage chair with 7% GST
= 100% + 7%
= 107%
Amount that Adam has to pay
= 107% x 6000
=
107100 x 6000
= $6420
(b)
Amount more that Adam must pay because of the GST increase
= 6420 - 6240
= $180
Answer(s): (a) $6420; (b) $180