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.
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 =
(NOTE: the tax amount will ALWAYS be rounded up!)
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b)
Cost-of-Item(including GST) =
Cost-with-no-tax =