Archie bought five food processors that cost $216 each before Goods and Service Tax (GST).
- Given that GST was charged at 3%, how much GST did Archie have to pay for one food processor?
- What was the total cost of the food processors, inclusive of GST?
(a)
GST that Archie had to pay for one food processor
= 3% x 216
=
3100 x 216
= $6.48
(b)
Cost of one food processor inclusive of GST
= 216 + 6.48
= $222.48
Cost of five food processors inclusive of GST
= 5 x 222.48
= $1112.4
Answer(s): (a) $6.48; (b) $1112.4