Question

A bicycle was sold for $282.50 selling price included 13% harmonized sales tax. find the amount of HST on the price?

Answer 1

$32.50

Explanation:

Let the cost price of the bicycle = x

`\text{Sales Price = Cost Price + Tax}`

The harmonized sales tax is 13%.

`\begin{gathered} x+(13\%\text{ of x)=}282.50 \\ x+0.13x=282.50 \\ 1.13x=282.50 \\ x=(282.50)/(1.13) \\ x=\$250 \end{gathered}`

We can then subtract from the sales price to find the harmonized sales tax.

`\begin{gathered} \text{HST}=\text{Sales Price-Cost Price} \\ =282.50-250 \\ =\$32.50 \end{gathered}`

The harmonized sales tax on the price is $32.50.