The price of a massage chair with 5% GST is $4620.
- 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 massage chair with 5% GST
= 100% + 5%
= 105%
105% → $4620
1% → 4620 ÷ 105 = $44
100% → 100 x 44 = $4400
Price of the massage chair with 6% GST
= 100% + 6%
= 106%
Amount that Adam has to pay
= 106% x 4400
=
106100 x 4400
= $4664
(b)
Amount more that Adam must pay because of the GST increase
= 4664 - 4620
= $44
Answer(s): (a) $4664; (b) $44