The price of a projector with 11% GST is $444.
- 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 projector with 11% GST
= 100% + 11%
= 111%
111% → $444
1% → 444 ÷ 111 = $4
100% → 100 x 4 = $400
Price of the projector with 5% GST
= 100% + 5%
= 105%
Amount that Adam has to pay
= 105% x 400
=
105100 x 400
= $420
(b)
Saving that Adam enjoys
= 444 - 420
= $24
Answer(s): (a) $420; (b) $24