The price of a television set with 7% GST is $1926.
- How much does Adam have to pay if the GST is decreased to 3%?
- How much saving does Adam enjoy as a result of the decrease in GST?
(a)
Price of the television set with 7% GST
= 100% + 7%
= 107%
107% → $1926
1% → 1926 ÷ 107 = $18
100% → 100 x 18 = $1800
Price of the television set with 3% GST
= 100% + 3%
= 103%
Amount that Adam has to pay
= 103% x 1800
=
103100 x 1800
= $1854
(b)
Saving that Adam enjoys
= 1926 - 1854
= $72
Answer(s): (a) $1854; (b) $72