Howard bought five vacuum cleaners that cost $308 each before Goods and Service Tax (GST).
- Given that GST was charged at 4%, how much GST did Howard have to pay for one vacuum cleaner?
- What was the total cost of the vacuum cleaners, inclusive of GST?
(a)
GST that Howard had to pay for one vacuum cleaner
= 4% x 308
=
4100 x 308
= $12.32
(b)
Cost of one vacuum cleaner inclusive of GST
= 308 + 12.32
= $320.32
Cost of five vacuum cleaners inclusive of GST
= 5 x 320.32
= $1601.6
Answer(s): (a) $12.32; (b) $1601.6