The price of a massage chair with 5% GST is $1155.
- How much does Adam have to pay if the GST is decreased to 4%?
- How much saving does Adam enjoy as a result of the decrease in GST?
(a)
Price of the massage chair with 5% GST
= 100% + 5%
= 105%
105% → $1155
1% → 1155 ÷ 105 = $11
100% → 100 x 11 = $1100
Price of the massage chair with 4% GST
= 100% + 4%
= 104%
Amount that Adam has to pay
= 104% x 1100
=
104100 x 1100
= $1144
(b)
Saving that Adam enjoys
= 1155 - 1144
= $11
Answer(s): (a) $1144; (b) $11