Bobby bought five toaster ovens that cost $375 each before Goods and Service Tax (GST).
- Given that GST was charged at 3%, how much GST did Bobby have to pay for one toaster oven?
- What was the total cost of the toaster ovens, inclusive of GST?
(a)
GST that Bobby had to pay for one toaster oven
= 3% x 375
=
3100 x 375
= $11.25
(b)
Cost of one toaster oven inclusive of GST
= 375 + 11.25
= $386.25
Cost of five toaster ovens inclusive of GST
= 5 x 386.25
= $1931.25
Answer(s): (a) $11.25; (b) $1931.25