The price of a mobile phone with 3% GST is $309.
- How much does Adam have to pay if the GST is decreased to 2%?
- How much saving does Adam enjoy as a result of the decrease in GST?
(a)
Price of the mobile phone with 3% GST
= 100% + 3%
= 103%
103% → $309
1% → 309 ÷ 103 = $3
100% → 100 x 3 = $300
Price of the mobile phone with 2% GST
= 100% + 2%
= 102%
Amount that Adam has to pay
= 102% x 300
=
102100 x 300
= $306
(b)
Saving that Adam enjoys
= 309 - 306
= $3
Answer(s): (a) $306; (b) $3