Calculating GST and Prices

Eddie the Magic Monk explains the concept of GST (Goods and Services Tax), a 10% tax added to the purchase price of goods and services. He demonstrates how to calculate GST using examples, including a computer and a plumber's service. Eddie introduces a quicker method for GST calculation and explains how to find the pre-tax price from a GST-inclusive price using algebra. He emphasizes the importance of not simply subtracting 10% from the GST-inclusive price to find the pre-tax price.

What does GST stand for?

• Global Sales Tax

• Government Service Tax

• Goods and Services Tax

• General Sales Tax

What percentage is the GST in the given lesson?

• 5%

• 15%

• 10%

• 20%

If a product costs $1000 before GST, how much GST would you pay?

• $100

• $50

• $150

• $200

What is the total cost of a computer priced at $1500 before GST?

• $1750

• $1600

• $1650

• $1700

In the plumber example, what was the GST amount added to the $400 service?

• $30

• $40

• $50

• $60

What is the total amount paid to the plumber including GST?

• $440

• $420

• $450

• $430

What is the quicker method to calculate GST on a $400 service?

• Subtract $40

• Add $40

• Multiply by 1.1

• Multiply by 0.1

Why does multiplying by 1.1 give the total price including GST?

• It adds 20% to the original price

• It subtracts 10% from the original price

• It adds 10% to the original price

• It subtracts 20% from the original price

What is the GST-inclusive price of shoes costing $80 before GST?

• $85

• $92

• $88

• $90

How do you find the pre-GST price if the GST-inclusive price is $1200?

• Add 10%

• Multiply by 1.1

• Subtract 10%

• Divide by 1.1