Urgent help

Question

Harris purchased a set of golf clubs from the USA for U$900, He had to pay 18% customs duty, and 13% HST to import it. Calculate the total cost of the clubs. if a similar set of clubs cost C$1000 plus 13%HST, was it cheaper to for him to buy it from the USA?. Assume that the current exchange rate was U$1=C$1.1115

Answer 1

$1179

 

To get his total cost, including both taxes, multiply $900 by 1.31

 

Okay, I didn't see the exchange rate.  Also, to get the textbook answer, we have to assume that the 13%HST tax is imposed AFTER the 18% duty is imposed and added onto that original $900US (which is really $1000.35C).  And that duty and HST tax is apparently based on not $900 US, but it's Canadian equivalent which is $1000.35

 

Thus, it is much cheaper to buy the clubs in Canada!