Question

Another United States traveler arrives at a United States point of entry. He has purchased a Fiat car aboard that cost him $6,250. How much duty does he have to pay?

Answer 1

The traveler has to pay $625 in duty.

Step-by-step explanation:

To calculate the duty that the traveler has to pay, we need to determine the percentage of duty applied to the value of the Fiat car. The duty rate varies depending on the classification of the car. Let's assume that the duty rate for this particular Fiat car is 10%.

To calculate the duty amount, we can multiply the value of the car ($6,250) by the duty rate (10% or 0.10).

Duty amount = $6,250 * 0.10 = $625.

Therefore, the traveler has to pay $625 in duty.