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

Answer:

$32.50

Explanation:

Let the cost price of the bicycle = x

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

The harmonized sales tax is 13%.

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

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.