Archie bought two vacuum cleaners that cost $215 each before Goods and Service Tax (GST).
- Given that GST was charged at 5%, how much GST did Archie have to pay for one vacuum cleaner?
- What was the total cost of the vacuum cleaners, inclusive of GST?
(a)
GST that Archie had to pay for one vacuum cleaner
= 5% x 215
=
5100 x 215
= $10.75
(b)
Cost of one vacuum cleaner inclusive of GST
= 215 + 10.75
= $225.75
Cost of two vacuum cleaners inclusive of GST
= 2 x 225.75
= $451.5
Answer(s): (a) $10.75; (b) $451.5