Question

if the cost of product (including 5% GST) in Alberta was $3230.58, calculate the cost the same model of the project (including 13% HST) in New Brunswick. Assume that the cost before tax in both province is the same

Answer 1

First, you need to find the base price of the product before GST or HST is applied.

Answer 2

In Alberta, GST is 5%.
The original price of the product is 100%.
Since 5% GST was added, the final price in Alberta, including 5% GST, was 105% of the original price.
Do you follow so far?

Answer 3

yes

Answer 4

If, in Alberta, the price including GST is $3230.58 and corresponds to 105% of the original price, then the original price is

\(price~before~taxes = \dfrac{$3230.58}{105\%} = \dfrac{$3230.58}{1.05} \)

Can you find the original price before taxes?

Answer 5

3076.74?

Answer 6

Correct.
That is the price of the product before GST or HST.
Now, in New Brunswick, HST is 13%.
Now you need to find what is $3076.74 + 13% HST.

Answer 7

Think the same way again, only in reverse.
The original price of the product is 100% of the price. It is also $3076.74.
In New Brunswick, you need to pay 13% HST, so you will end up paying 113% of the original price.
Now you need to find what is 113% of $3076.74.
To find a percentage of a number, you always multiply the percentage by the number and divide by 10-0.
Change the percent into a decimal (that is the divide by 100 part) and multiply by the number.

What is 1.13 * $3076.74 ?

Answer 8

3476.72

Answer 9

Correct, eh?

Answer 10

You got it. Good job!