Tip, Tax and Discounts

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What is a tip and how is it typically calculated?

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A tip is a sum of money given to someone for their services, typically calculated as a percentage of the total bill. Commonly, tips in restaurants range from 15% to 20% of the total cost.

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How do you calculate the amount of a discount?

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To calculate the amount of a discount, multiply the original price by the discount rate (as a decimal). For example, a 15% discount on a $100 item is calculated as $100 x 0.15 = $15.

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What is the formula for calculating the selling price after a markup?

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The selling price after a markup can be calculated using the formula: Selling Price = Cost Price + (Cost Price x Markup Rate). For example, if a t-shirt costs $7.50 and has a 40% markup, the selling price is $7.50 + ($7.50 x 0.40) = $10.50.

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What is sales tax and how is it calculated?

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Sales tax is a percentage added to the price of goods and services, calculated by multiplying the purchase price by the sales tax rate (as a decimal). For example, a 6.5% sales tax on a $49.56 item is $49.56 x 0.065 = $3.22.

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How do you calculate the final price after applying a discount?

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To calculate the final price after applying a discount, subtract the discount amount from the original price. For example, if a jacket costs $62.00 and has a $9.30 discount, the final price is $62.00 - $9.30 = $52.70.

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What is the difference between a markup and a discount?

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A markup is an increase in the price of an item above its cost price, while a discount is a reduction from the original price. Markup increases profit margins, while discounts are often used to encourage sales.

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What does it mean to apply a percentage to a number?

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Applying a percentage to a number means calculating a portion of that number based on the percentage. For example, to find 20% of $100, you calculate $100 x 0.20 = $20.

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How do you convert a percentage to a decimal?

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To convert a percentage to a decimal, divide the percentage by 100. For example, 15% as a decimal is 15 ÷ 100 = 0.15.

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What is the total cost of an item including tax?

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The total cost of an item including tax is calculated by adding the sales tax to the original price. For example, if an item costs $49.56 and the sales tax is $3.22, the total cost is $49.56 + $3.22 = $52.78.

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How do you find the percentage increase or decrease?

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To find the percentage increase or decrease, subtract the original value from the new value, divide by the original value, and multiply by 100. For example, if a price increases from $50 to $60, the increase is ($60 - $50) / $50 x 100 = 20%.