The price of a projector with 11% GST is $999.
- How much does Adam have to pay if the GST is decreased to 5%?
- How much saving does Adam enjoy as a result of the decrease in GST?
(a)
Price of the projector with 11% GST
= 100% + 11%
= 111%
111% → $999
1% → 999 ÷ 111 = $9
100% → 100 x 9 = $900
Price of the projector with 5% GST
= 100% + 5%
= 105%
Amount that Adam has to pay
= 105% x 900
=
105100 x 900
= $945
(b)
Saving that Adam enjoys
= 999 - 945
= $54
Answer(s): (a) $945; (b) $54