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Old October 22nd, 2009, 09:19 PM
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Question Finding amount before taxes..

a) Cody has just bought a gift in Nunavut and paid $474.97.
What exactly was the retail price before taxes?
Note that Nunavut charges GST of 5%

b) Siran has just bought a gift in Prince Edward Island and paid $502.14.
What exactly was the retail price before taxes?
Note that Prince Edward Island charges GST of 5% and PST of 10% (and P.S.T is charged on top of G.S.T).

Any help?
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Old October 22nd, 2009, 09:48 PM
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If you bought something for $250 and was charges 5% tax,
then tax amount = 250 * .05 = 12.50; so total = $262.50

So question would be: if you paid $212.50 including 5% tax,
what was the retail price before taxes?

Apply that to your 2 problems.
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Old October 23rd, 2009, 05:51 AM
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Quote:
Originally Posted by johnny4johhny99 View Post
a) Cody has just bought a gift in Nunavut and paid $474.97.
What exactly was the retail price before taxes?
Note that Nunavut charges GST of 5%

b) Siran has just bought a gift in Prince Edward Island and paid $502.14.
What exactly was the retail price before taxes?
Note that Prince Edward Island charges GST of 5% and PST of 10% (and P.S.T is charged on top of G.S.T).

Any help?
Price-of-item + taxes = Total-amount-paid
taxes = 5% or 0.05 times price-of-item

Total-amount-paid = Price-of-item + (price-of-item)x0.05

Total-amount-paid = Price-of-item x (1.05)

If you know the Total-amount-paid & the tax rate, then

Price-of-item = \dfrac{ \text {Total-amount-paid}}{ 1.05}

(NOTE: the tax amount will ALWAYS be rounded up!)

--
b)
Cost-of-Item(including GST) = \dfrac{502.14}{1.10}

Cost-with-no-tax = \dfrac{ \left( \dfrac{502.14}{1.10} \right)}{\left(\dfrac{1.05}{1}\right)}
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