The cost of a particular item is $308, which includes GST at 10%. Find the GST.
Question
The cost of a particular item is $308, which includes GST at 10%. Find the GST.
Solution
Step 1: Understand that the cost of the item includes the Goods and Services Tax (GST). In this case, the GST is 10% of the original price.
Step 2: Let's denote the original price (before GST) as X. Since the GST is 10% of the original price, the GST amount would be 0.10X.
Step 3: The total cost of the item is the original price plus the GST. So, $308 = X + 0.10X.
Step 4: Combine like terms on the right side of the equation to get $308 = 1.10X.
Step 5: Solve for X (the original price before GST) by dividing both sides of the equation by 1.10. So, X = 280.
Step 6: Now that we know the original price, we can find the GST by subtracting the original price from the total cost. So, GST = 280 = $28.
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