The price of a hi-fi system with 15% GST is $1035.
- 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 hi-fi system with 15% GST
= 100% + 15%
= 115%
115% → $1035
1% → 1035 ÷ 115 = $9
100% → 100 x 9 = $900
Price of the hi-fi system with 5% GST
= 100% + 5%
= 105%
Amount that Adam has to pay
= 105% x 900
=
105100 x 900
= $945
(b)
Saving that Adam enjoys
= 1035 - 945
= $90
Answer(s): (a) $945; (b) $90