Howard bought four food processors that cost $174 each before Goods and Service Tax (GST).
- Given that GST was charged at 7%, how much GST did Howard have to pay for one food processor?
- What was the total cost of the food processors, inclusive of GST?
(a)
GST that Howard had to pay for one food processor
= 7% x 174
=
7100 x 174
= $12.18
(b)
Cost of one food processor inclusive of GST
= 174 + 12.18
= $186.18
Cost of four food processors inclusive of GST
= 4 x 186.18
= $744.72
Answer(s): (a) $12.18; (b) $744.72