Question

Textbooks are exempted from PST in Ontario. If the total cost of a book

including 5% GST is $89, how much GST is paid for the textbook?​

Answer 1

To find the GST paid on a $89 textbook that includes 5% GST, you divide the total cost by 1.05 and subtract the result from the total cost, which reveals that $4.24 was paid in GST.

Step-by-step explanation:

To calculate the amount of GST paid for the textbook with a total cost of $89, which includes 5% GST, we need to work backward to find the original price before GST. To do this, we divide the total cost by 1.05 since GST is 5%:

Original Price = Total Cost / (1 + GST rate)

Original Price = $89 / 1.05

Original Price = $84.76

We subtract the original price from the total cost to get the amount of GST paid:

GST Paid = Total Cost - Original Price

GST Paid = $89 - $84.76

GST Paid = $4.24

Therefore, the amount of GST paid for the textbook is $4.24.

Answer 2

4.24

Step-by-step explanation:

Total price = price of the book + 5% of the price of the book

T = total price P = price of the book G = GST

T = P + G

and

G = 5% of P = 0.05P

therefore

T = P + 5%P = 1P + 0,05P = 1.05P

P = T/1.05 = 89/1.05 ≅ 84.76 (it is 84.7619047619)

G = 89 - 84.76 = 4.24