Simon bought four refrigerators that cost $393 each before Goods and Service Tax (GST).
- Given that GST was charged at 5%, how much GST did Simon have to pay for one refrigerator?
- What was the total cost of the refrigerators, inclusive of GST?
(a)
GST that Simon had to pay for one refrigerator
= 5% x 393
=
5100 x 393
= $19.65
(b)
Cost of one refrigerator inclusive of GST
= 393 + 19.65
= $412.65
Cost of four refrigerators inclusive of GST
= 4 x 412.65
= $1650.6
Answer(s): (a) $19.65; (b) $1650.6