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An item was purchased for a price of $880, including 10% GST - HSC - SSCE Mathematics Standard - Question 8 - 2023 - Paper 1

Question 8

An item was purchased for a price of $880, including 10% GST. What is the amount of GST included in the price?

Worked Solution & Example Answer:An item was purchased for a price of $880, including 10% GST - HSC - SSCE Mathematics Standard - Question 8 - 2023 - Paper 1

Step 1

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Answer

To find the price without GST, we can use the formula:

ext{Price excluding GST} = rac{ ext{Total price}}{1 + ext{GST rate}}

In this case, the total price is $880 and the GST rate is 10%, which can be expressed as 0.10:

ext{Price excluding GST} = rac{880}{1 + 0.10} = rac{880}{1.10} = 800

Step 2

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Answer

The GST amount can be calculated as 10% of the price excluding GST:

ext{GST Amount} = ext{Price excluding GST} imes ext{GST rate}

Substituting in the value:

ext{GST Amount} = 800 imes 0.10 = 80

Step 3

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Answer

From the calculations, the amount of GST included in the price is $80. Therefore, the correct answer is:

C. $80.00

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