Owen bought five kettles that cost $277 each before Goods and Service Tax (GST).
- Given that GST was charged at 3%, how much GST did Owen have to pay for one kettle?
- What was the total cost of the kettles, inclusive of GST?
(a)
GST that Owen had to pay for one kettle
= 3% x 277
=
3100 x 277
= $8.31
(b)
Cost of one kettle inclusive of GST
= 277 + 8.31
= $285.31
Cost of five kettles inclusive of GST
= 5 x 285.31
= $1426.55
Answer(s): (a) $8.31; (b) $1426.55