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GST and Simple Interest

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GST and Simple Interest

Calculator and money illustration

💰 Part 1: GST Calculations

Remember: GST in New Zealand is 15%. To calculate GST: Price × 0.15

1. Calculate the GST on these items:

a) A book costing $40.00 GST = $__________

b) A phone costing $250.00 GST = $__________

c) A bicycle costing $480.00 GST = $__________

2. Find the total price including GST:

a) Shoes: $120.00 + GST = $__________

b) Laptop: $800.00 + GST = $__________

3. Multiple choice: If an item costs $60.00 excluding GST, what is the total price including GST?

$69.00

$75.00

$66.00

$65.00

📈 Part 2: Simple Interest

Formula: Simple Interest = Principal × Rate × Time

Where: Principal = amount borrowed/invested, Rate = interest rate per year, Time = number of years

4. Calculate the simple interest:

a) Principal: $500, Rate: 4% per year, Time: 3 years

Interest = $________ × ________ × ________ = $________

b) Principal: $1200, Rate: 6% per year, Time: 2 years

Interest = $________ × ________ × ________ = $________

5. Sarah invests $800 at 5% simple interest per year. How much interest will she earn in 4 years?

Answer: $__________

6. Multiple choice: What is the simple interest on $1000 at 3% per year for 5 years?

$150

$300

$50

$1500

🛍️ Part 3: Real-World Problems

7. Tom buys a gaming console for $600.00 (excluding GST). What is the total amount he pays including GST?

Total amount: $__________

8. Lisa borrows $2000 from her parents at 4% simple interest per year. How much total money (principal + interest) will she need to pay back after 3 years?

Total repayment: $__________

9. Extension Challenge: A store sells a laptop for $920.00 including GST. What was the original price before GST was added?

Hint: If the price including GST is 115% of the original price...

Original price: $__________

10. Explain in your own words when you might use GST and simple interest calculations in real life:

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