Ian bought five speakers that cost $182 each before Goods and Service Tax (GST).
- Given that GST was charged at 7%, how much GST did Ian have to pay for one speaker?
- What was the total cost of the speakers, inclusive of GST?
(a)
GST that Ian had to pay for one speaker
= 7% x 182
=
7100 x 182
= $12.74
(b)
Cost of one speaker inclusive of GST
= 182 + 12.74
= $194.74
Cost of five speakers inclusive of GST
= 5 x 194.74
= $973.7
Answer(s): (a) $12.74; (b) $973.7