The price of a projector with 5% GST is $1680.
- How much does Adam have to pay if the GST is decreased to 4%?
- How much saving does Adam enjoy as a result of the decrease in GST?
(a)
Price of the projector with 5% GST
= 100% + 5%
= 105%
105% → $1680
1% → 1680 ÷ 105 = $16
100% → 100 x 16 = $1600
Price of the projector with 4% GST
= 100% + 4%
= 104%
Amount that Adam has to pay
= 104% x 1600
=
104100 x 1600
= $1664
(b)
Saving that Adam enjoys
= 1680 - 1664
= $16
Answer(s): (a) $1664; (b) $16