Nick bought four television sets that cost $249 each before Goods and Service Tax (GST).
- Given that GST was charged at 5%, how much GST did Nick have to pay for one television set?
- What was the total cost of the television sets, inclusive of GST?
(a)
GST that Nick had to pay for one television set
= 5% x 249
=
5100 x 249
= $12.45
(b)
Cost of one television set inclusive of GST
= 249 + 12.45
= $261.45
Cost of four television sets inclusive of GST
= 4 x 261.45
= $1045.8
Answer(s): (a) $12.45; (b) $1045.8