The price of a stereo system with 13% GST is $2147.
- How much does Adam have to pay if the GST is decreased to 1%?
- How much saving does Adam enjoy as a result of the decrease in GST?
(a)
Price of the stereo system with 13% GST
= 100% + 13%
= 113%
113% → $2147
1% → 2147 ÷ 113 = $19
100% → 100 x 19 = $1900
Price of the stereo system with 1% GST
= 100% + 1%
= 101%
Amount that Adam has to pay
= 101% x 1900
=
101100 x 1900
= $1919
(b)
Saving that Adam enjoys
= 2147 - 1919
= $228
Answer(s): (a) $1919; (b) $228