The cost of a particular service is $583, which includes GST at 10%. Find the GST.
Question
The cost of a particular service is $583, which includes GST at 10%. Find the GST.
Solution
Step 1: Understand that GST is included in the given cost, which is $583. The GST rate is 10%.
Step 2: Let's denote the original price (before GST) as X. Since GST is added to the original price to get the final cost, we can write the equation as follows: X + 10% of X = $583.
Step 3: To simplify the calculation, we can express 10% as 0.10. So, the equation becomes: X + 0.10X = $583.
Step 4: Combine like terms: 1.10X = $583.
Step 5: Solve for X (the original price before GST) by dividing both sides of the equation by 1.10: X = 530.
Step 6: Now that we have the original price, we can find the GST by subtracting the original price from the total cost: GST = 530 = $53.
So, the GST is $53.
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