Fred bought two food processors that cost $227 each before Goods and Service Tax (GST).
- Given that GST was charged at 6%, how much GST did Fred have to pay for one food processor?
- What was the total cost of the food processors, inclusive of GST?
(a)
GST that Fred had to pay for one food processor
= 6% x 227
=
6100 x 227
= $13.62
(b)
Cost of one food processor inclusive of GST
= 227 + 13.62
= $240.62
Cost of two food processors inclusive of GST
= 2 x 240.62
= $481.24
Answer(s): (a) $13.62; (b) $481.24