The price of a television set with 5% GST is $7350.
- How much does Adam have to pay if the GST is increased to 15%?
- How much more must Adam pay because of the GST increase?
(a)
Price of the television set with 5% GST
= 100% + 5%
= 105%
105% → $7350
1% → 7350 ÷ 105 = $70
100% → 100 x 70 = $7000
Price of the television set with 15% GST
= 100% + 15%
= 115%
Amount that Adam has to pay
= 115% x 7000
=
115100 x 7000
= $8050
(b)
Amount more that Adam must pay because of the GST increase
= 8050 - 7350
= $700
Answer(s): (a) $8050; (b) $700