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Question 8 (1 point) A perfume is sold at Target Canada for $79.99 plus HST (13%). The same perfume is sold at Target USA for
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Answer #1
Price in Canada
Currency C$ Amt C$
Price Per unit 79.99
Add : HST 13%                  10.40
Final Price with Tax                  90.39
Price in USA
Price details in USD Amt US $
Price Per unit 74.99
Add : VAT 8%                     6.00
Final Price with Tax                  80.99
Exchange Rate :
USD 0.996 =1 C$
USD 1=1/0.996=1.004016 C$
So Final Price with Tax in USD =80.99
So Final Price with Tax in C$ =80.100*1.004016=                  81.31
Comparing price of perfume in C$ in two countries
USA Canada
Perfume price with Tax                  81.31                   90.39
So Difference in Price =                     9.07
So % by which price is cheap in USA =9.07/81.31= 11.16%
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