Adam wants to buy a stereo system. The usual price of the stereo system is $500.
As a privileged card member, he is entitled to a discount of 40%.
He needs to pay a GST of 12%.
- How much is the GST?
- How much does he pay for the stereo system in all?
Discount
= 40% x 500
=
40100 x 500
= $200
Amount that Adam has to pay
= 500 - 200
= $300
GST
= 12% x 300
=
12100 x 300
= $36
(b)
Amount that Adam pays for the stereo system in all
= 300 + 36
= $336
Answer(s): (a) $36; (b) $336