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Math Help - Finding amount before taxes..

  1. #1
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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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  2. #2
    MHF Contributor
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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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  3. #3
    Super Member
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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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