Howard bought four juicers that cost $396 each before Goods and Service Tax (GST).
- Given that GST was charged at 7%, how much GST did Howard have to pay for one juicer?
- What was the total cost of the juicers, inclusive of GST?
(a)
GST that Howard had to pay for one juicer
= 7% x 396
=
7100 x 396
= $27.72
(b)
Cost of one juicer inclusive of GST
= 396 + 27.72
= $423.72
Cost of four juicers inclusive of GST
= 4 x 423.72
= $1694.88
Answer(s): (a) $27.72; (b) $1694.88