Practice!

Sample Problem

A flute is sold for $73.50 each (inclusive of 5% GST). During the sale, customers buy one and get the next one at a discount of 12%. Daniel bought 2 flutes during the sale. Calculate

a) The total amount he paid for both flutes,

$

b) The total amount of GST.

$

Solution

a) The second flute: $73.50 × (1 – 12%) = $64.68

The total payment: $73.50 + $64.68 = $138.18

b) The original cost of first flute: $73.50 ÷ (1+5%) = $70.00

The GST amount of the first flute: $73.50 – $70 = $3.50

The cost of the second flute before the GST: $70 × (1 – 12%) = $61.60

The GST amount of the second flute: $64.48 – $61.60 = $2.88

The total amount of GST: $3.50 + $2.88 = $6.38