The price of a projector with 3% GST is $5150.
- How much does Adam have to pay if the GST is increased to 16%?
- How much more must Adam pay because of the GST increase?
(a)
Price of the projector with 3% GST
= 100% + 3%
= 103%
103% → $5150
1% → 5150 ÷ 103 = $50
100% → 100 x 50 = $5000
Price of the projector with 16% GST
= 100% + 16%
= 116%
Amount that Adam has to pay
= 116% x 5000
=
116100 x 5000
= $5800
(b)
Amount more that Adam must pay because of the GST increase
= 5800 - 5150
= $650
Answer(s): (a) $5800; (b) $650