If the Invoice Price for Services Rendered to a Client

question 62

Multiple Choice

If the invoice price for services rendered to a client is $4246, including GST, how much GST is to be collected from the client?

• A) $424.60
• B) $467.06
• C) $386.00
• D) Nil

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Definitions:

Effective (Annualized) Yield

A calculation of the annual return on an investment, taking into account the effect of compounding interest.

Consumer Price Index

An index that measures the average change over time in the prices paid by urban consumers for a market basket of consumer goods and services.

Effective Annualized Rate

The interest rate on an investment or loan on an annual basis, taking compounding into account.

Inflation

The rate at which the general level of prices for goods and services is rising, eroding purchasing power.