Neave bought five microwave ovens that cost $272 each before Goods and Service Tax (GST).
- Given that GST was charged at 4%, how much GST did Neave have to pay for one microwave oven?
- What was the total cost of the microwave ovens, inclusive of GST?
(a)
GST that Neave had to pay for one microwave oven
= 4% x 272
=
4100 x 272
= $10.88
(b)
Cost of one microwave oven inclusive of GST
= 272 + 10.88
= $282.88
Cost of five microwave ovens inclusive of GST
= 5 x 282.88
= $1414.4
Answer(s): (a) $10.88; (b) $1414.4