Kaitlyn who lives in Vancouver, purchased a piece of equipment from Australia for A$49,370. He was charged 16% duty, 5% GST, and 7% PST to import it. Calculate the total cost of the equipment. Assume that the exchange rate was C$1 = A$1.0227. Tax is charged on the price of the equipment after applying the duty.

What was the total cost of the equipment?

To calculate the total cost of the equipment, we need to follow these steps:

1. **Convert the Equipment Cost to Canadian Dollars (C$):**
   - Equipment cost in Australian dollars (A$): 49,370
   - Exchange rate: 1 C$ = 1.0227 A$
   - Equipment cost in Canadian dollars (C$):
   \[
   \text{Equipment cost (C$)} = \frac{\text{Equipment cost (A$)}}{\text{Exchange rate}} = \frac{49,370}{1.0227} \approx 48,272.22 \text{ C$}
   \]

2. **Calculate the Duty:**
   - Duty rate: 16%
   - Duty amount:
   \[
   \text{Duty} = \text{Equipment cost (C$)} \times \text{Duty rate} = 48,272.22 \times 0.16 \approx 7,723.56 \text{ C$}
   \]

3. **Calculate the Cost after Duty:**
   - Cost after adding duty:
   \[
   \text{Cost after duty} = \text{Equipment cost (C$)} + \text{Duty} = 48,272.22 + 7,723.56 \approx 55,995.78 \text{ C$}
   \]

4. **Calculate the GST and PST:**
   - GST rate: 5%
   - PST rate: 7%
   - Total tax rate: GST + PST = 5% + 7% = 12%
   - Total tax amount:
   \[
   \text{Total tax} = \text{Cost after duty} \times \text{Total tax rate} = 55,995.78 \times 0.12 \approx 6,719.49 \text{ C$}
   \]

5. **Calculate the Total Cost:**
   - Total cost including duty, GST, and PST:
   \[
   \text{Total cost} = \text{Cost after duty} + \text{Total tax} = 55,995.78 + 6,719.49 \approx 62,715.27 \text{ C$}
   \]

The total cost of the equipment, including duty, GST, and PST, is approximately **C$62,715.27**.

Would you like further details or have any questions?

Here are 5 related questions you might find useful:
1. How would the total cost change if the duty rate was different?
2. What if only GST was applied without PST, how would that affect the total cost?
3. How do exchange rate fluctuations affect the total cost in Canadian dollars?
4. What would be the total cost if the equipment was purchased in a different country with different tax rates?
5. How is GST different from PST in terms of what it applies to?

**Tip:** Always keep an eye on exchange rates when making international purchases, as they can significantly affect the total cost.

Kaitlyn who lives in Vancouver, purchased a piece of equipment from Australia for A$49,370. He was charged 16% duty, 5% GST, and 7% PST to import it. Calculate the total cost of the equipment. Assume that the exchange rate was C$1 = A$1.0227. Tax is charged on the price of the equipment after applying the duty. What was the total cost of the equipment?

Learn how to calculate the total cost of equipment purchased from Australia for A$49,370 with 16% duty, 5% GST, and 7% PST. Convert to Canadian dollars using an exchange rate of C$1 = A$1.0227 and follow detailed tax and duty calculations.

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