The price of a television set with 13% GST is $791.
- How much does Adam have to pay if the GST is decreased to 12%?
- How much saving does Adam enjoy as a result of the decrease in GST?
(a)
Price of the television set with 13% GST
= 100% + 13%
= 113%
113% → $791
1% → 791 ÷ 113 = $7
100% → 100 x 7 = $700
Price of the television set with 12% GST
= 100% + 12%
= 112%
Amount that Adam has to pay
= 112% x 700
=
112100 x 700
= $784
(b)
Saving that Adam enjoys
= 791 - 784
= $7
Answer(s): (a) $784; (b) $7