The price of a mobile phone with 13% GST is $2147.
- How much does Adam have to pay if the GST is decreased to 8%?
- How much saving does Adam enjoy as a result of the decrease in GST?
(a)
Price of the mobile phone with 13% GST
= 100% + 13%
= 113%
113% → $2147
1% → 2147 ÷ 113 = $19
100% → 100 x 19 = $1900
Price of the mobile phone with 8% GST
= 100% + 8%
= 108%
Amount that Adam has to pay
= 108% x 1900
=
108100 x 1900
= $2052
(b)
Saving that Adam enjoys
= 2147 - 2052
= $95
Answer(s): (a) $2052; (b) $95