Neave bought three speakers that cost $309 each before Goods and Service Tax (GST).
- Given that GST was charged at 4%, how much GST did Neave have to pay for one speaker?
- What was the total cost of the speakers, inclusive of GST?
(a)
GST that Neave had to pay for one speaker
= 4% x 309
=
4100 x 309
= $12.36
(b)
Cost of one speaker inclusive of GST
= 309 + 12.36
= $321.36
Cost of three speakers inclusive of GST
= 3 x 321.36
= $964.08
Answer(s): (a) $12.36; (b) $964.08