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# Finance Calculations: Prices and Taxes

1. The current average selling price for a home in Canada is \$275,000. If the current price is 7 2/3% lower than last year, what was last year's average price?

2. An advertising budget of \$96,000 for a corporation is allocated to the company's 3 regions on the basis of last year's sales. Last year's sales per region are as follows:

Maritimes \$210,000

Central \$560,000

West \$350,000

3. The price of an item including 8% PST and 7% GST is \$279.99.

a) What is the price without the taxes?
b) How much is the GST?

4. Felix receives a commission of 7.25% on monthly sales up to \$10,000, 8% on the next \$8,000, and 12.5% on any additional sales. If Felix has sales totaling \$25,000 in March, what are the commissions earned by Felix in March?

5. A Canadian holidaying in the U.S. purchases a computer for \$625.00 U.S. On returning to Canada he has to pay a 12% import duty and the 7% GST. What is the total cost of the computer in Canadian dollars? The GST is calculated on the cost plus the import duty. (Assume that \$1 Canadian = \$.70116 U.S.)

#### Solution Preview

1. The current average selling price for a home in Canada is \$275,000. If the current price is 7 2/3% lower than last year, what was last year's average price?

Last years Price = current years price / (1 - % change)

= 275,000 / ( 1 - 7 2/3%)
=\$297,833.94

2. An advertising budget of \$96,000 for a corporation is allocated to the company's 3 regions on the basis of last year's sales. Last year's sales per region are as follows:

% of total ...

#### Solution Summary

This solution provides a detailed, step by step response, which includes all required calculations and formulas to solve the finance-based questions being asked.

\$2.19