Quandaries and Queries
  


Hi! just wondering if you could help me?

I need to find an easy solution to remembering how to calculated the gst and pst once I have the total amount. ex: my total is $154.40, I have to find the gst and then the pst. I live in bc so the taxes are 7% for gst and 7.5% for pst. I think I can do the gst but i am having problems finding the pst. what I have done is 154.40 divided by 1.07= 144.30 so my gst and pst is $10.10. but I need to find the amount for each. could you please help me??

Robin

Hi Robin,

The pst and gst are each applied to the before tax price. That is

gst amount = 0.07 (before tax price), and

pst amount = 0.075 (before tax price) Thus the total tax is the sum of the pst and gst, and hence total tax = 0.145 (before tax price) Hence the before tax price is before tax price = $154.40/1.145 = $134.85

The gst is 7% of $134.85 and the pst is 7.5% of $134.85. The sum of the pst, gst and $134.85 is $154.40.

Penny


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