The price of a television set with 12% GST is $672.
- How much does Adam have to pay if the GST is decreased to 1%?
- How much saving does Adam enjoy as a result of the decrease in GST?
(a)
Price of the television set with 12% GST
= 100% + 12%
= 112%
112% → $672
1% → 672 ÷ 112 = $6
100% → 100 x 6 = $600
Price of the television set with 1% GST
= 100% + 1%
= 101%
Amount that Adam has to pay
= 101% x 600
=
101100 x 600
= $606
(b)
Saving that Adam enjoys
= 672 - 606
= $66
Answer(s): (a) $606; (b) $66