The price of a tablet with 14% GST is $798.
- How much does Adam have to pay if the GST is decreased to 12%?
- How much saving does Adam enjoy as a result of the decrease in GST?
(a)
Price of the tablet with 14% GST
= 100% + 14%
= 114%
114% → $798
1% → 798 ÷ 114 = $7
100% → 100 x 7 = $700
Price of the tablet with 12% GST
= 100% + 12%
= 112%
Amount that Adam has to pay
= 112% x 700
=
112100 x 700
= $784
(b)
Saving that Adam enjoys
= 798 - 784
= $14
Answer(s): (a) $784; (b) $14