Neave bought three speakers that cost $189 each before Goods and Service Tax (GST).
- Given that GST was charged at 6%, how much GST did Neave have to pay for one speaker?
- What was the total cost of the speakers, inclusive of GST?
(a)
GST that Neave had to pay for one speaker
= 6% x 189
=
6100 x 189
= $11.34
(b)
Cost of one speaker inclusive of GST
= 189 + 11.34
= $200.34
Cost of three speakers inclusive of GST
= 3 x 200.34
= $601.02
Answer(s): (a) $11.34; (b) $601.02