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Pam Alnwick used to live in a province where the Harmonized Sales Tax, HST, was 15%. She recently moved to a state in the US

Pam Alnwick used to live in a province where the Harmonized Sales Tax, HST, was

15%.

She recently moved to a state in the US where sales tax is

6.7%.

When shopping, the task of comparing American prices with Canadian prices was further complicated by the fact that, at the time of her move, the Canadian dollar was worth

0.79US$.

After thinking about it, she calculated a number K so that a pre-tax shelf price of A US$ could be sensibly compared with a pre-tax shelf price of C CDN$, so as to take into account the different sales tax rates. Her K had the property that if

AK=C,

then the after-tax costs in Canadian dollars were the same, while if AK is less (greater) than C, then, after taxes, the American (Canadian) price is cheaper. Find Pam's multiplier K.

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