A house is being renovated for $50,000. Right now the HST is 12% and is charged on all renovations. After April the HST will be gone and be replaced with PST of 7% and the GST of 6%. Renovations will only have to charge GST. How much money will the homeowner save if they wait until April to get the renovations done?
Thanks Reiny for #1 but i still need help on this one... i just don't get it
To calculate the savings if the homeowner waits until April to get the renovations done, we need to compare the amount of HST charged before April with the amount of GST charged after April.
Before April:
HST charged = 12% of the renovation cost
HST amount = 12/100 * $50,000 = $6,000
After April:
GST charged = 6% of the renovation cost
GST amount = 6/100 * $50,000 = $3,000
To find the savings, we need to subtract the GST amount from the HST amount:
Savings = HST amount - GST amount
Savings = $6,000 - $3,000
Savings = $3,000
Therefore, the homeowner will save $3,000 if they wait until April to get the renovations done.