The price of a mobile phone with 12% GST is $2128.
- 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 mobile phone with 12% GST
= 100% + 12%
= 112%
112% → $2128
1% → 2128 ÷ 112 = $19
100% → 100 x 19 = $1900
Price of the mobile phone with 6% GST
= 100% + 6%
= 106%
Amount that Adam has to pay
= 106% x 1900
=
106100 x 1900
= $2014
(b)
Saving that Adam enjoys
= 2128 - 2014
= $114
Answer(s): (a) $2014; (b) $114