The price of a projector with 10% GST is $1540.
- How much does Adam have to pay if the GST is decreased to 1%?
- How much saving does Adam enjoy as a result of the decrease in GST?
(a)
Price of the projector with 10% GST
= 100% + 10%
= 110%
110% → $1540
1% → 1540 ÷ 110 = $14
100% → 100 x 14 = $1400
Price of the projector with 1% GST
= 100% + 1%
= 101%
Amount that Adam has to pay
= 101% x 1400
=
101100 x 1400
= $1414
(b)
Saving that Adam enjoys
= 1540 - 1414
= $126
Answer(s): (a) $1414; (b) $126