The price of a computer with 9% GST is $1090.
- How much does Adam have to pay if the GST is decreased to 6%?
- How much saving does Adam enjoy as a result of the decrease in GST?
(a)
Price of the computer with 9% GST
= 100% + 9%
= 109%
109% → $1090
1% → 1090 ÷ 109 = $10
100% → 100 x 10 = $1000
Price of the computer with 6% GST
= 100% + 6%
= 106%
Amount that Adam has to pay
= 106% x 1000
=
106100 x 1000
= $1060
(b)
Saving that Adam enjoys
= 1090 - 1060
= $30
Answer(s): (a) $1060; (b) $30