The price of a laptop with 7% GST is $1177.
- How much does Adam have to pay if the GST is decreased to 5%?
- How much saving does Adam enjoy as a result of the decrease in GST?
(a)
Price of the laptop with 7% GST
= 100% + 7%
= 107%
107% → $1177
1% → 1177 ÷ 107 = $11
100% → 100 x 11 = $1100
Price of the laptop with 5% GST
= 100% + 5%
= 105%
Amount that Adam has to pay
= 105% x 1100
=
105100 x 1100
= $1155
(b)
Saving that Adam enjoys
= 1177 - 1155
= $22
Answer(s): (a) $1155; (b) $22