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5 A train ticket from Sydney to Bomaderry costs $25.50 including 10% GST. What is the price of the ticket before tax?

A train ticket from Sydney to Bomaderry costs $25.50\$25.50 including 10%10\% GST. What is the price of the ticket before tax?

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Full solution

Q. A train ticket from Sydney to Bomaderry costs $25.50\$25.50 including 10%10\% GST. What is the price of the ticket before tax?
  1. Given Information: We know:\newlineTotal ticket price with GST: $25.50\$25.50\newlineGST percentage: 10%10\%\newlineTo find the price before tax, we need to divide the total price by 11 plus the tax rate (expressed as a decimal).\newlinePrice before tax = Total price / (1+Tax rate)(1 + \text{Tax rate})\newlinePrice before tax = $25.50/(1+0.10)\$25.50 / (1 + 0.10)\newlinePrice before tax = $25.50/1.10\$25.50 / 1.10
  2. Calculate Price Before Tax: Now we perform the division to find the price before tax.$25.50/1.10=$23.181818...\$25.50 / 1.10 = \$23.181818... Since we are dealing with currency, we round to two decimal places. Price before tax = $23.18\$23.18

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