Question
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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