The price of a stereo system with 7% GST is $1819.
- 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 stereo system with 7% GST
= 100% + 7%
= 107%
107% → $1819
1% → 1819 ÷ 107 = $17
100% → 100 x 17 = $1700
Price of the stereo system with 3% GST
= 100% + 3%
= 103%
Amount that Adam has to pay
= 103% x 1700
=
103100 x 1700
= $1751
(b)
Saving that Adam enjoys
= 1819 - 1751
= $68
Answer(s): (a) $1751; (b) $68