The price of a printer with 14% GST is $1368.
- How much does Adam have to pay if the GST is decreased to 7%?
- How much saving does Adam enjoy as a result of the decrease in GST?
(a)
Price of the printer with 14% GST
= 100% + 14%
= 114%
114% → $1368
1% → 1368 ÷ 114 = $12
100% → 100 x 12 = $1200
Price of the printer with 7% GST
= 100% + 7%
= 107%
Amount that Adam has to pay
= 107% x 1200
=
107100 x 1200
= $1284
(b)
Saving that Adam enjoys
= 1368 - 1284
= $84
Answer(s): (a) $1284; (b) $84