The price of a mobile phone with 8% GST is $1296.
- 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 mobile phone with 8% GST
= 100% + 8%
= 108%
108% → $1296
1% → 1296 ÷ 108 = $12
100% → 100 x 12 = $1200
Price of the mobile phone with 3% GST
= 100% + 3%
= 103%
Amount that Adam has to pay
= 103% x 1200
=
103100 x 1200
= $1236
(b)
Saving that Adam enjoys
= 1296 - 1236
= $60
Answer(s): (a) $1236; (b) $60