The price of a computer with 10% GST is $770.
- How much does Adam have to pay if the GST is decreased to 6%?
- 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% → $770
1% → 770 ÷ 110 = $7
100% → 100 x 7 = $700
Price of the computer with 6% GST
= 100% + 6%
= 106%
Amount that Adam has to pay
= 106% x 700
=
106100 x 700
= $742
(b)
Saving that Adam enjoys
= 770 - 742
= $28
Answer(s): (a) $742; (b) $28