The price of a television set with 12% GST is $448.
- 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 television set with 12% GST
= 100% + 12%
= 112%
112% → $448
1% → 448 ÷ 112 = $4
100% → 100 x 4 = $400
Price of the television set with 4% GST
= 100% + 4%
= 104%
Amount that Adam has to pay
= 104% x 400
=
104100 x 400
= $416
(b)
Saving that Adam enjoys
= 448 - 416
= $32
Answer(s): (a) $416; (b) $32