Question

1. arjay was thinking of buying a car worth $23 000, but delayed purchasing the car for a year. during that year, the cost of the car increased by 3.2%.

a) what was the price of the car when arjay purchased it?
b) what was the total cost of the car including 5% gst and 5% pst?

Explanation:

Step1: Calculate price increase amount

$\text{Increase} = 23000 \times 0.032 = 736$

Step2: Find new car price (part a)

$\text{New Price} = 23000 + 736 = 23736$

Step3: Calculate total tax rate

$\text{Total Tax Rate} = 5\% + 5\% = 10\% = 0.10$

Step4: Calculate tax on new price

$\text{Tax} = 23736 \times 0.10 = 2373.60$

Step5: Find total cost (part b)

$\text{Total Cost} = 23736 + 2373.60 = 26109.60$

Answer:

a) $\$23736$
b) $\$26109.60$