The price of a massage chair with 8% GST is $5940.
- How much does Adam have to pay if the GST is increased to 12%?
- How much more must Adam pay because of the GST increase?
(a)
Price of the massage chair with 8% GST
= 100% + 8%
= 108%
108% → $5940
1% → 5940 ÷ 108 = $55
100% → 100 x 55 = $5500
Price of the massage chair with 12% GST
= 100% + 12%
= 112%
Amount that Adam has to pay
= 112% x 5500
=
112100 x 5500
= $6160
(b)
Amount more that Adam must pay because of the GST increase
= 6160 - 5940
= $220
Answer(s): (a) $6160; (b) $220