Please help. The question reads...The refrigerator was repaired for $176. If GST is 10%, how much was GST? Is the answer $17.60 or $16. Can some one please tell me which answer is right and why the other answer is wrong. GST is a Tax added on to the purchase price. If $17.60 is right wouldnt the repair then cost $193.60?
Ok, so you have edited the question. It is asking for the value before tax of 10% is added.
$176 is the total after tax is added hence as a percentage value it is 110% which is 1.1 as a decimal number. To get the value before tax, we need to find the 100% value hence we cross multiply.
Therefore the value before tax is added is $160.