The price of a tablet with 4% GST is $4680.
- How much does Adam have to pay if the GST is increased to 16%?
- How much more must Adam pay because of the GST increase?
(a)
Price of the tablet with 4% GST
= 100% + 4%
= 104%
104% → $4680
1% → 4680 ÷ 104 = $45
100% → 100 x 45 = $4500
Price of the tablet with 16% GST
= 100% + 16%
= 116%
Amount that Adam has to pay
= 116% x 4500
=
116100 x 4500
= $5220
(b)
Amount more that Adam must pay because of the GST increase
= 5220 - 4680
= $540
Answer(s): (a) $5220; (b) $540