The price of a computer with 10% GST is $1540.
- How much does Adam have to pay if the GST is decreased to 2%?
- How much saving does Adam enjoy as a result of the decrease in GST?
(a)
Price of the computer with 10% GST
= 100% + 10%
= 110%
110% → $1540
1% → 1540 ÷ 110 = $14
100% → 100 x 14 = $1400
Price of the computer with 2% GST
= 100% + 2%
= 102%
Amount that Adam has to pay
= 102% x 1400
=
102100 x 1400
= $1428
(b)
Saving that Adam enjoys
= 1540 - 1428
= $112
Answer(s): (a) $1428; (b) $112