Michael bought two refrigerators that cost $277 each before Goods and Service Tax (GST).
- Given that GST was charged at 4%, how much GST did Michael have to pay for one refrigerator?
- What was the total cost of the refrigerators, inclusive of GST?
(a)
GST that Michael had to pay for one refrigerator
= 4% x 277
=
4100 x 277
= $11.08
(b)
Cost of one refrigerator inclusive of GST
= 277 + 11.08
= $288.08
Cost of two refrigerators inclusive of GST
= 2 x 288.08
= $576.16
Answer(s): (a) $11.08; (b) $576.16