The price of a television set with 2% GST is $3060.
- How much does Adam have to pay if the GST is increased to 14%?
- How much more must Adam pay because of the GST increase?
(a)
Price of the television set with 2% GST
= 100% + 2%
= 102%
102% → $3060
1% → 3060 ÷ 102 = $30
100% → 100 x 30 = $3000
Price of the television set with 14% GST
= 100% + 14%
= 114%
Amount that Adam has to pay
= 114% x 3000
=
114100 x 3000
= $3420
(b)
Amount more that Adam must pay because of the GST increase
= 3420 - 3060
= $360
Answer(s): (a) $3420; (b) $360