Sales Tax and Tip Practice

Front

What is sales tax?

Back

Sales tax is a percentage of the sale price of goods and services that is added to the total cost at the time of purchase.

Front

How do you calculate the total cost including sales tax?

Back

To calculate the total cost including sales tax, multiply the original price by the sales tax rate (as a decimal), then add that amount to the original price.

Front

If an item costs $100 and has a sales tax of 8%, what is the total cost?

Back

Total cost = $100 + ($100 * 0.08) = $108.

Front

What is a tip?

Back

A tip is a sum of money given to someone for their services, typically calculated as a percentage of the total bill.

Front

How do you calculate a tip amount?

Back

To calculate a tip amount, multiply the total bill by the tip percentage (as a decimal).

Front

If a meal costs $50 and you want to leave a 15% tip, how much is the tip?

Back

Tip = $50 * 0.15 = $7.50.

Front

What is the difference between sales tax and tip?

Back

Sales tax is a government-imposed charge on sales, while a tip is a voluntary payment to service workers for their service.

Front

What does it mean to 'add' sales tax to a price?

Back

Adding sales tax means increasing the original price by the amount of tax calculated based on the sales tax rate.

Front

If a product costs $200 and the sales tax is 10%, what is the total cost?

Back

Total cost = $200 + ($200 * 0.10) = $220.

Front

What is the formula for calculating the final price with sales tax?

Back

Final Price = Original Price + (Original Price * Sales Tax Rate).