The price of a laptop with 8% GST is $1620.
- 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 8% GST
= 100% + 8%
= 108%
108% → $1620
1% → 1620 ÷ 108 = $15
100% → 100 x 15 = $1500
Price of the laptop with 5% GST
= 100% + 5%
= 105%
Amount that Adam has to pay
= 105% x 1500
=
105100 x 1500
= $1575
(b)
Saving that Adam enjoys
= 1620 - 1575
= $45
Answer(s): (a) $1575; (b) $45