The price of a television set with 5% GST is $1470.
- How much does Adam have to pay if the GST is increased to 6%?
- How much more must Adam pay because of the GST increase?
(a)
Price of the television set with 5% GST
= 100% + 5%
= 105%
105% → $1470
1% → 1470 ÷ 105 = $14
100% → 100 x 14 = $1400
Price of the television set with 6% GST
= 100% + 6%
= 106%
Amount that Adam has to pay
= 106% x 1400
=
106100 x 1400
= $1484
(b)
Amount more that Adam must pay because of the GST increase
= 1484 - 1470
= $14
Answer(s): (a) $1484; (b) $14