Nick bought two microwave ovens that cost $107 each before Goods and Service Tax (GST).
- Given that GST was charged at 3%, how much GST did Nick have to pay for one microwave oven?
- What was the total cost of the microwave ovens, inclusive of GST?
(a)
GST that Nick had to pay for one microwave oven
= 3% x 107
=
3100 x 107
= $3.21
(b)
Cost of one microwave oven inclusive of GST
= 107 + 3.21
= $110.21
Cost of two microwave ovens inclusive of GST
= 2 x 110.21
= $220.42
Answer(s): (a) $3.21; (b) $220.42