Practice!

Sample Problem

Fill in the blanks. Tax rate is 6.5%

Price after Tax Price before Tax GST amount

$2,982

 

$

 

$

$3,408

$

 

$

 

 

Solution

Price before Tax: $2,982 ÷ (100% + 6.5%) = $2,982 ÷ 1.065 = $2,800

GST amount: $2,982 – $2,800 = $182

Price before Tax: $3,408 ÷ (100% + 6.5%) = $3,408 ÷ 1.065 = $3,200

GST amount: $3,408 – $3,200 = $208