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 40%.
He needs to pay a GST of 8%.
- How much is the GST?
- How much does he pay for the hi-fi system in all?
Discount
= 40% x 2500
=
40100 x 2500
= $1000
Amount that Adam has to pay
= 2500 - 1000
= $1500
GST
= 8% x 1500
=
8100 x 1500
= $120
(b)
Amount that Adam pays for the hi-fi system in all
= 1500 + 120
= $1620
Answer(s): (a) $120; (b) $1620