The price of a television set with 8% GST is $6480.
- How much does Adam have to pay if the GST is increased to 10%?
- How much more must Adam pay because of the GST increase?
(a)
Price of the television set with 8% GST
= 100% + 8%
= 108%
108% → $6480
1% → 6480 ÷ 108 = $60
100% → 100 x 60 = $6000
Price of the television set with 10% GST
= 100% + 10%
= 110%
Amount that Adam has to pay
= 110% x 6000
=
110100 x 6000
= $6600
(b)
Amount more that Adam must pay because of the GST increase
= 6600 - 6480
= $120
Answer(s): (a) $6600; (b) $120