David bought two washing machines that cost $111 each before Goods and Service Tax (GST).
- Given that GST was charged at 7%, how much GST did David have to pay for one washing machine?
- What was the total cost of the washing machines, inclusive of GST?
(a)
GST that David had to pay for one washing machine
= 7% x 111
=
7100 x 111
= $7.77
(b)
Cost of one washing machine inclusive of GST
= 111 + 7.77
= $118.77
Cost of two washing machines inclusive of GST
= 2 x 118.77
= $237.54
Answer(s): (a) $7.77; (b) $237.54