Peter bought three lamps that cost $253 each before Goods and Service Tax (GST).
- Given that GST was charged at 7%, how much GST did Peter have to pay for one lamp?
- What was the total cost of the lamps, inclusive of GST?
(a)
GST that Peter had to pay for one lamp
= 7% x 253
=
7100 x 253
= $17.71
(b)
Cost of one lamp inclusive of GST
= 253 + 17.71
= $270.71
Cost of three lamps inclusive of GST
= 3 x 270.71
= $812.13
Answer(s): (a) $17.71; (b) $812.13