The price of a mobile phone with 11% GST is $1665.
- 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 mobile phone with 11% GST
= 100% + 11%
= 111%
111% → $1665
1% → 1665 ÷ 111 = $15
100% → 100 x 15 = $1500
Price of the mobile phone with 5% GST
= 100% + 5%
= 105%
Amount that Adam has to pay
= 105% x 1500
=
105100 x 1500
= $1575
(b)
Saving that Adam enjoys
= 1665 - 1575
= $90
Answer(s): (a) $1575; (b) $90