The price of a hi-fi system with 15% GST is $345.
- How much does Adam have to pay if the GST is decreased to 6%?
- How much saving does Adam enjoy as a result of the decrease in GST?
(a)
Price of the hi-fi system with 15% GST
= 100% + 15%
= 115%
115% → $345
1% → 345 ÷ 115 = $3
100% → 100 x 3 = $300
Price of the hi-fi system with 6% GST
= 100% + 6%
= 106%
Amount that Adam has to pay
= 106% x 300
=
106100 x 300
= $318
(b)
Saving that Adam enjoys
= 345 - 318
= $27
Answer(s): (a) $318; (b) $27