Adam wants to buy a hi-fi system. The usual price of the hi-fi system is $2500.
As a privileged card member, he is entitled to a discount of 20%.
He needs to pay a GST of 7%.
- How much is the GST?
- How much does he pay for the hi-fi system in all?
Discount
= 20% x 2500
=
20100 x 2500
= $500
Amount that Adam has to pay
= 2500 - 500
= $2000
GST
= 7% x 2000
=
7100 x 2000
= $140
(b)
Amount that Adam pays for the hi-fi system in all
= 2000 + 140
= $2140
Answer(s): (a) $140; (b) $2140