The price of a massage chair with 11% GST is $1776.
- How much does Adam have to pay if the GST is decreased to 10%?
- How much saving does Adam enjoy as a result of the decrease in GST?
(a)
Price of the massage chair with 11% GST
= 100% + 11%
= 111%
111% → $1776
1% → 1776 ÷ 111 = $16
100% → 100 x 16 = $1600
Price of the massage chair with 10% GST
= 100% + 10%
= 110%
Amount that Adam has to pay
= 110% x 1600
=
110100 x 1600
= $1760
(b)
Saving that Adam enjoys
= 1776 - 1760
= $16
Answer(s): (a) $1760; (b) $16