Question

How much would a consumer pay for a​ t-shirt with a list price of ​$22 if the purchase was made in a province with a pst rate of 8​%? assume that the pst is applied as a percent of the retail price. also assume that a gst of ​5% applies to this purchase. the consumer would pay?

Answer 1

To find the total cost of a t-shirt with a list price of $22, add a GST of 5% ($1.10) and a PST of 8% ($1.76) to get a final price of $24.86.

Step-by-step explanation:

To calculate the total amount a consumer would pay for a t-shirt with a list price of $22 in a province with a PST (Provincial Sales Tax) rate of 8%, and a GST (Goods and Services Tax) rate of 5%, we shall first calculate the amount of each tax separately and then add them to the original price of the t-shirt.

• The GST is calculated as 5% of the list price: 0.05 × $22 = $1.10.
• The PST is calculated as 8% of the list price: 0.08 × $22 = $1.76.
• Add both taxes to the original list price to find the total price: $22 + $1.10 + $1.76 = $24.86.

The consumer would therefore pay $24.86 for the t-shirt including both GST and PST.