Fred bought five vacuum cleaners that cost $104 each before Goods and Service Tax (GST).
- Given that GST was charged at 3%, how much GST did Fred have to pay for one vacuum cleaner?
- What was the total cost of the vacuum cleaners, inclusive of GST?
(a)
GST that Fred had to pay for one vacuum cleaner
= 3% x 104
=
3100 x 104
= $3.12
(b)
Cost of one vacuum cleaner inclusive of GST
= 104 + 3.12
= $107.12
Cost of five vacuum cleaners inclusive of GST
= 5 x 107.12
= $535.6
Answer(s): (a) $3.12; (b) $535.6