Riordan bought four refrigerators that cost $255 each before Goods and Service Tax (GST).
- Given that GST was charged at 9%, how much GST did Riordan have to pay for one refrigerator?
- What was the total cost of the refrigerators, inclusive of GST?
(a)
GST that Riordan had to pay for one refrigerator
= 9% x 255
=
9100 x 255
= $22.95
(b)
Cost of one refrigerator inclusive of GST
= 255 + 22.95
= $277.95
Cost of four refrigerators inclusive of GST
= 4 x 277.95
= $1111.8
Answer(s): (a) $22.95; (b) $1111.8