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A particular service has a cost of $810 excluding GST at 10%. What is the total cost after GST is added?

Question

A particular service has a cost of $810 excluding GST at 10%. What is the total cost after GST is added?

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Solution

1. ### Break Down the Problem

We need to calculate the total cost after adding the Goods and Services Tax (GST) to the initial service cost.

2. ### Relevant Concepts

The formula to calculate the total cost after adding GST is: Total Cost=Cost Excluding GST+GST Amount \text{Total Cost} = \text{Cost Excluding GST} + \text{GST Amount} Where: GST Amount=Cost Excluding GST×GST Rate \text{GST Amount} = \text{Cost Excluding GST} \times \text{GST Rate}

3. ### Analysis and Detail

  1. Identify the cost excluding GST: Cost Excluding GST=810 \text{Cost Excluding GST} = 810
  2. Identify the GST rate: GST Rate=10%=0.10 \text{GST Rate} = 10\% = 0.10
  3. Calculate the GST Amount: GST Amount=810×0.10=81 \text{GST Amount} = 810 \times 0.10 = 81
  4. Calculate the total cost: Total Cost=810+81=891 \text{Total Cost} = 810 + 81 = 891

4. ### Verify and Summarize

We have calculated the GST amount and total cost. The calculations show that the GST on the service cost of 810is810 is 81, leading to a total cost of $891.

Final Answer

The total cost after GST is added is $891.

This problem has been solved

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