Michael bought two television sets that cost $205 each before Goods and Service Tax (GST).
- Given that GST was charged at 5%, how much GST did Michael have to pay for one television set?
- What was the total cost of the television sets, inclusive of GST?
(a)
GST that Michael had to pay for one television set
= 5% x 205
=
5100 x 205
= $10.25
(b)
Cost of one television set inclusive of GST
= 205 + 10.25
= $215.25
Cost of two television sets inclusive of GST
= 2 x 215.25
= $430.5
Answer(s): (a) $10.25; (b) $430.5