Jack bought four vacuum cleaners that cost $299 each before Goods and Service Tax (GST).
- Given that GST was charged at 5%, how much GST did Jack have to pay for one vacuum cleaner?
- What was the total cost of the vacuum cleaners, inclusive of GST?
(a)
GST that Jack had to pay for one vacuum cleaner
= 5% x 299
=
5100 x 299
= $14.95
(b)
Cost of one vacuum cleaner inclusive of GST
= 299 + 14.95
= $313.95
Cost of four vacuum cleaners inclusive of GST
= 4 x 313.95
= $1255.8
Answer(s): (a) $14.95; (b) $1255.8