TV1 and TV3 6PM News Ultimate Maths Fail

By Steve Biddle, in , posted: 9-Feb-2010 19:14

If you were (un)lucky enough to watch TV1 or TV3's 6PM news broadcasts tonight you were witness to a classic maths failure from both networks - the inability to correctly calculate a proposed 2.5% increase in GST.

Both networks showed a list of prices and calculated the new price with a 15% GST. Both failed miserably when it came to such a simple calculation and have no doubt confused an entire country.

When a product sells for $1500 the GST component of that price is $166.66 (rounded to 2 decimal places) and the GST excl price of the product is $1333.33 (rouded to 2 decimal places).

To deduct GST from a price divide it by 9 to establish the GST value or divide it by 1.125 to establish the GST exclusive amount,

Both networks simply added 2.5% onto the existing GST inclusive price which is wrong and does not give the correct amount. To calculate the new 15% GST inclusive price, the current 12.5% GST needs to be deducted from the current retail and the new 15% GST rate added to this GST excl price.

On TV3's example of a $1500 TV they show the new price of $1537.50, a $37.50 increase. 15% GST on the GST excl price of $1333.33 is $200.00, giving a new retail of $1533.33, a $33.33 increase.












On TV3

$1.50 is a only a negligible difference due to rounding
$200 -> $205 when it should be $204.44
$1500 -> $1537.50 when it should be $1533.33


How can you trust either network to deliver is accurate news when they're unable to calculate a basic maths equation?


Other related posts:
No, AT aren’t stealing your money. How Stuff confused a nation.
The perils of using Airbnb during big events
How to remotely control your heat pump from your phone for under NZ$25






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Steve Biddle
Wellington
New Zealand


I'm an engineer who loves building solutions to solve problems.


I also love sharing my views and analysis of the tech world on this blog, along with the odd story about aviation and the travel industry.

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