The price of a printer with 4% GST is $1040.
- How much does Adam have to pay if the GST is increased to 11%?
- How much more must Adam pay because of the GST increase?
(a)
Price of the printer with 4% GST
= 100% + 4%
= 104%
104% → $1040
1% → 1040 ÷ 104 = $10
100% → 100 x 10 = $1000
Price of the printer with 11% GST
= 100% + 11%
= 111%
Amount that Adam has to pay
= 111% x 1000
=
111100 x 1000
= $1110
(b)
Amount more that Adam must pay because of the GST increase
= 1110 - 1040
= $70
Answer(s): (a) $1110; (b) $70