Nick bought five microwave ovens that cost $131 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 131
=
3100 x 131
= $3.93
(b)
Cost of one microwave oven inclusive of GST
= 131 + 3.93
= $134.93
Cost of five microwave ovens inclusive of GST
= 5 x 134.93
= $674.65
Answer(s): (a) $3.93; (b) $674.65