 |
| ||
| |||
|
| Math Central | Quandaries & Queries |
|
Question from Ruby, a student: This question showed up in one of my Math assignments and nothing on the internet seemed to help me find a way to calculate it. A certain country has a two-tiered GST system. For the first $\$1500$ of any item, GST is levied at 10% and any amount over $\$1500$ is levied at 15%. |
Hi Ruby,
10% of $\$1500$ is $0.10 \times \$1500 = \$150$ and since both of the GST amounts you have are more that $\$150$ the items purchased must have cost more than $\$1500.$
Suppose the GST paid had been $\$450.$ Think of the purchase happening in two steps.
Step 1:
Purchase part of your order for $\$1500$ and pay a GST amount of $0.10 \times \$1500 = \$150.$
Step 2:
Purchase the remainder of your order for $\$R$ and pay 15% GST on this part. The GST you paid in this second step was $\$450 - \$150 = \$300.$ What is the amount $\$R$ if 15% of $\$R$ is $\$300?$
You paid $\$1500 + \$R.$
Now try your problem,
Penny
| ||
| ||
| ||
 |
 |
|
|
||
Math Central is supported by the University of Regina and the Imperial Oil Foundation.