Kevin lives in Calgary and wants to buy a 2003 Corvette. The best price he can find for a low-mileage model in Alberta is $49,000. (No GST would be payable on this private sale.) Through autotrader.com he tracked down a comparable car in California that he can purchase for US$34,500. To bring the car into Canada, he will have to pay 5% GST on the purchase price at Canada Customs. Additional costs will be C$287 for airfare to San Diego, US$350 in special transaction and documentation costs, and US$850 in travel and accommodation costs while driving the vehicle back to Calgary. How much will he save (in C$) by buying the Corvette in California?

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The Answer of Kevin lives in Calgary and wants to buy a 2003 Corvette. The best price he can find for a low-mileage model in Alberta is $49,000. (No GST would be payable on this private sale.) Through autotrader.com he tracked down a comparable car in California that he can purchase for US$34,500. To bring the car into Canada, he will have to pay 5% GST on the purchase price at Canada Customs. Additional costs will be C$287 for airfare to San Diego, US$350 in special transaction and documentation costs, and US$850 in travel and accommodation costs while driving the vehicle back to Calgary. How much will he save (in C$) by buying the Corvette in California?

Kevin Lives in Calgary and Wants to Buy a 2003