The price of a hi-fi system with 2% GST is $9180.
- 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 hi-fi system with 2% GST
= 100% + 2%
= 102%
102% → $9180
1% → 9180 ÷ 102 = $90
100% → 100 x 90 = $9000
Price of the hi-fi system with 14% GST
= 100% + 14%
= 114%
Amount that Adam has to pay
= 114% x 9000
=
114100 x 9000
= $10260
(b)
Amount more that Adam must pay because of the GST increase
= 10260 - 9180
= $1080
Answer(s): (a) $10260; (b) $1080