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?

Question

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?

Help me please, My teacher gave me no notes or examples on this, this assignment is already due please help, i posted this question yesterday and noone helped. please help me!!!!!!!!!

Answer 1

right now tax is .12(50000) = 6000

after april
PST= .07(50000) = 3500
GST = .06(50000) = 3000
new tax is 6500

so savings is 6500-600 = 500

What I had suggested in the earlier post is to simply take the difference in the percents
12% vs (6+7)%
that difference is 1%
and 1% of 50000 = 500

Canadian , eh?

Answer 2

my answer is wrong, I did not read the question carefully enough

after april they are charged only the GST
which is .06(50000) = 3000

so they would save $3000

Answer 3

I'm sorry to hear that you're feeling stressed about your assignment. I'll do my best to help you figure out the answer.

To solve this problem, we need to calculate the amount of money the homeowner saves if they wait until April to get the renovations done, compared to getting them done now. We'll assume the cost of the renovations remains the same at $50,000.

First, let's calculate the amount of HST charged on the renovations if they are done now. The HST rate is 12%, so the HST charged can be calculated as:

HST charged = 12% of $50,000

HST charged = 0.12 * $50,000

HST charged = $6,000

Now, let's calculate the amount of GST charged on the renovations if they are done after April. The GST rate is 6%, so the GST charged can be calculated as:

GST charged = 6% of $50,000

GST charged = 0.06 * $50,000

GST charged = $3,000

Therefore, the homeowner saves:

Savings = HST charged - GST charged

Savings = $6,000 - $3,000

Savings = $3,000

So, if the homeowner waits until April to get the renovations done, they will save $3,000.

I hope this helps! Let me know if you have any further questions.