Discount, Tax, Tip and Commission

Front

What is a tip and how is it typically calculated?

Back

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

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How do you calculate a percentage of a given amount?

Back

To calculate a percentage of a given amount, multiply the amount by the percentage (in decimal form). For example, to find 15% of $100, calculate 100 * 0.15 = $15.

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What is sales tax and how is it applied to purchases?

Back

Sales tax is a percentage added to the price of goods and services, collected by the seller and paid to the government. It is calculated by multiplying the purchase price by the sales tax rate.

Front

How do you calculate the total cost of an item including sales tax?

Back

To calculate the total cost including sales tax, multiply the item's price by the sales tax rate, then add that amount to the original price. Total Cost = Price + (Price * Sales Tax Rate).

Front

What is a discount and how is it calculated?

Back

A discount is a reduction in the price of an item, typically expressed as a percentage. To calculate the discount amount, multiply the original price by the discount percentage (in decimal form).

Front

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

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To find the final price after applying a discount, subtract the discount amount from the original price. Final Price = Original Price - Discount Amount.

Front

What is the formula for calculating a tip based on a meal's cost?

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Tip = Meal Cost * Tip Percentage (in decimal form). For example, for a $50 meal with a 20% tip, Tip = 50 * 0.20 = $10.

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How do you calculate the total price of an item after applying a coupon discount?

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To calculate the total price after applying a coupon discount, subtract the discount amount from the original price. Total Price = Original Price - Coupon Discount.

Front

What is the difference between a tip and a commission?

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A tip is a voluntary payment for service, while a commission is a fee paid to an agent or employee based on the sales they generate.

Front

How do you calculate the amount of sales tax on a purchase?

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Sales Tax Amount = Purchase Price * Sales Tax Rate (in decimal form). For example, for a $100 purchase with a 5% sales tax, Sales Tax Amount = 100 * 0.05 = $5.