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:
How to instantly save up to 34 cents per litre off every litre of fuel in Wellington
GST changes hit imported goods from 1st December 2019
No Newshub and NIWA. Vodafone’s 5G network won’t interfere with your weather satellite images.






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sbiddle's profile

Steve Biddle
Wellington
New Zealand


I'm an engineer who loves building solutions to solve problems. I'll also a co-founder of the TravelTalk.nz travel site. 


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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*VoIP (Voice over IP). I work with various brands of hardware and PBX's on a daily basis
  -Asterisk (incl PiaF, FreePBX, Elastix)
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I'm an #avgeek who loves to travel the world (preferably in seat 1A) and stay in nice hotels.


+My views do no represent my employer. I'm sure they'll be happy to give their own if you ask them.


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