The price of a massage chair with 7% GST is $9630.
- 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 massage chair with 7% GST
= 100% + 7%
= 107%
107% → $9630
1% → 9630 ÷ 107 = $90
100% → 100 x 90 = $9000
Price of the massage chair with 10% GST
= 100% + 10%
= 110%
Amount that Adam has to pay
= 110% x 9000
=
110100 x 9000
= $9900
(b)
Amount more that Adam must pay because of the GST increase
= 9900 - 9630
= $270
Answer(s): (a) $9900; (b) $270