The price of a computer with 2% GST is $6630.
- 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 computer with 2% GST
= 100% + 2%
= 102%
102% → $6630
1% → 6630 ÷ 102 = $65
100% → 100 x 65 = $6500
Price of the computer with 12% GST
= 100% + 12%
= 112%
Amount that Adam has to pay
= 112% x 6500
=
112100 x 6500
= $7280
(b)
Amount more that Adam must pay because of the GST increase
= 7280 - 6630
= $650
Answer(s): (a) $7280; (b) $650