Vaidev bought four television sets that cost $155 each before Goods and Service Tax (GST).
- Given that GST was charged at 5%, how much GST did Vaidev have to pay for one television set?
- What was the total cost of the television sets, inclusive of GST?
(a)
GST that Vaidev had to pay for one television set
= 5% x 155
=
5100 x 155
= $7.75
(b)
Cost of one television set inclusive of GST
= 155 + 7.75
= $162.75
Cost of four television sets inclusive of GST
= 4 x 162.75
= $651
Answer(s): (a) $7.75; (b) $651