Answer: To find the price of the item without GST, we need to remove the GST amount from the total sales price.
Let's assume the original price of the item without GST is "x." The GST rate is usually given as a percentage, so let's assume the GST rate is "r%."
The formula to calculate the price of an item with GST is:
Price with GST = Original Price + (Original Price * GST Rate)
Given:
Price with GST = $87
Now, we can write the equation:
$87 = x + (x * r%)
To find the value of "x," we need to isolate it on one side of the equation. To do that, we can rewrite the equation as follows:
$87 = x(1 + r%)
Now, we can solve for "x":
x = $87 / (1 + r%)
Since the GST rate is given in percentage, we need to convert it to a decimal by dividing it by 100. Let's assume the GST rate is 10%, so r% = 10.
x = $87 / (1 + 0.10)
x = $87 / 1.10
x ≈ $79.09 (rounded to two decimal places)
So, the price of the item without GST is approximately $79.09.