The price of a hi-fi system with 5% GST is $5880.
- How much does Adam have to pay if the GST is increased to 8%?
- How much more must Adam pay because of the GST increase?
(a)
Price of the hi-fi system with 5% GST
= 100% + 5%
= 105%
105% → $5880
1% → 5880 ÷ 105 = $56
100% → 100 x 56 = $5600
Price of the hi-fi system with 8% GST
= 100% + 8%
= 108%
Amount that Adam has to pay
= 108% x 5600
=
108100 x 5600
= $6048
(b)
Amount more that Adam must pay because of the GST increase
= 6048 - 5880
= $168
Answer(s): (a) $6048; (b) $168