The price of a laptop with 10% GST is $1980.
- How much does Adam have to pay if the GST is decreased to 7%?
- How much saving does Adam enjoy as a result of the decrease in GST?
(a)
Price of the laptop with 10% GST
= 100% + 10%
= 110%
110% → $1980
1% → 1980 ÷ 110 = $18
100% → 100 x 18 = $1800
Price of the laptop with 7% GST
= 100% + 7%
= 107%
Amount that Adam has to pay
= 107% x 1800
=
107100 x 1800
= $1926
(b)
Saving that Adam enjoys
= 1980 - 1926
= $54
Answer(s): (a) $1926; (b) $54