Zane bought five stand mixers that cost $121 each before Goods and Service Tax (GST).
- Given that GST was charged at 4%, how much GST did Zane have to pay for one stand mixer?
- What was the total cost of the stand mixers, inclusive of GST?
(a)
GST that Zane had to pay for one stand mixer
= 4% x 121
=
4100 x 121
= $4.84
(b)
Cost of one stand mixer inclusive of GST
= 121 + 4.84
= $125.84
Cost of five stand mixers inclusive of GST
= 5 x 125.84
= $629.2
Answer(s): (a) $4.84; (b) $629.2