The price of a mobile phone with 12% GST is $1792.
- 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 mobile phone with 12% GST
= 100% + 12%
= 112%
112% → $1792
1% → 1792 ÷ 112 = $16
100% → 100 x 16 = $1600
Price of the mobile phone with 1% GST
= 100% + 1%
= 101%
Amount that Adam has to pay
= 101% x 1600
=
101100 x 1600
= $1616
(b)
Saving that Adam enjoys
= 1792 - 1616
= $176
Answer(s): (a) $1616; (b) $176