Luke bought four refrigerators that cost $102 each before Goods and Service Tax (GST).
- Given that GST was charged at 6%, how much GST did Luke have to pay for one refrigerator?
- What was the total cost of the refrigerators, inclusive of GST?
(a)
GST that Luke had to pay for one refrigerator
= 6% x 102
=
6100 x 102
= $6.12
(b)
Cost of one refrigerator inclusive of GST
= 102 + 6.12
= $108.12
Cost of four refrigerators inclusive of GST
= 4 x 108.12
= $432.48
Answer(s): (a) $6.12; (b) $432.48