The price of a massage chair with 14% GST is $1368.
- 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 massage chair with 14% GST
= 100% + 14%
= 114%
114% → $1368
1% → 1368 ÷ 114 = $12
100% → 100 x 12 = $1200
Price of the massage chair with 1% GST
= 100% + 1%
= 101%
Amount that Adam has to pay
= 101% x 1200
=
101100 x 1200
= $1212
(b)
Saving that Adam enjoys
= 1368 - 1212
= $156
Answer(s): (a) $1212; (b) $156