Sam bought two washing machines that cost $101 each before Goods and Service Tax (GST).
- Given that GST was charged at 9%, how much GST did Sam have to pay for one washing machine?
- What was the total cost of the washing machines, inclusive of GST?
(a)
GST that Sam had to pay for one washing machine
= 9% x 101
=
9100 x 101
= $9.09
(b)
Cost of one washing machine inclusive of GST
= 101 + 9.09
= $110.09
Cost of two washing machines inclusive of GST
= 2 x 110.09
= $220.18
Answer(s): (a) $9.09; (b) $220.18