Oliver bought five toaster ovens that cost $115 each before Goods and Service Tax (GST).
- Given that GST was charged at 5%, how much GST did Oliver have to pay for one toaster oven?
- What was the total cost of the toaster ovens, inclusive of GST?
(a)
GST that Oliver had to pay for one toaster oven
= 5% x 115
=
5100 x 115
= $5.75
(b)
Cost of one toaster oven inclusive of GST
= 115 + 5.75
= $120.75
Cost of five toaster ovens inclusive of GST
= 5 x 120.75
= $603.75
Answer(s): (a) $5.75; (b) $603.75