Kevin lives in Calgary and wants to buy a 2013 Tesla Model S electric vehicle. The best price he can find for a low-mileage model in Alberta is $95,000. (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$60,500. To bring the car into Canada, Kevin will pay 5% GST on the Canadian-dollar value of the vehicle. Additional costs ,viii be C$387 for airfare to San Diego, US$350 in special transaction and documentation costs, and US$550 in travel and accommodation costs while driving the vehicle back to Calgary. How much will he save (in Canadian dollars) by buying the Tesla in California?

If the necessary exchange rates are not given in problem, use the exchange rates in Table 3.2.

Table 3.2.

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Per C$ Per US$ Per € Per Y Per £ Canadian dollar (C$) 1.3083 1.4446 0.01084 2.0203 U.S. dollar (US$) 0.7644 1.1042 0.008286 1.5442 0.6922 0.9056 0.007504 1.3985 Euro (€) Japaense yen (V) British pound (£) 92.2509 120.6919 133.2657 186.3745 0.4950 0.6476 0.7150 0.005366