Asked by Molly

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!!!!!!!!!
Answered by Reiny
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?
Answered by Reiny
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
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