The price of a massage chair with 7% GST is $1070.
- How much does Adam have to pay if the GST is decreased to 3%?
- How much saving does Adam enjoy as a result of the decrease in GST?
(a)
Price of the massage chair with 7% GST
= 100% + 7%
= 107%
107% → $1070
1% → 1070 ÷ 107 = $10
100% → 100 x 10 = $1000
Price of the massage chair with 3% GST
= 100% + 3%
= 103%
Amount that Adam has to pay
= 103% x 1000
=
103100 x 1000
= $1030
(b)
Saving that Adam enjoys
= 1070 - 1030
= $40
Answer(s): (a) $1030; (b) $40