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A particular service has a cost of $0.20 excluding GST at 10%. What is the total cost after GST is added?

Question

A particular service has a cost of $0.20 excluding GST at 10%. What is the total cost after GST is added?

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Solution

Step 1: Identify the cost of the service before GST, which is $0.20.

Step 2: Calculate the GST amount. GST is 10% of the cost. So, multiply $0.20 by 10% (or 0.10).

0.200.10=0.20 * 0.10 = 0.02

Step 3: Add the GST amount to the original cost to get the total cost.

0.20+0.20 + 0.02 = $0.22

So, the total cost of the service after GST is added is $0.22.

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