Sales Tax & Tip

Front

What is sales tax?

Back

Sales tax is a percentage of the purchase price that is added to the total cost of goods or services, collected by the seller and paid to the government.

Front

How do you calculate the total cost including sales tax?

Back

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

Front

What is a tip?

Back

A tip is a sum of money given to service workers (like waitstaff) as a reward for their service, 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 the tip is 15%, how much is the tip?

Back

The tip would be $7.50, calculated as $50 x 0.15.

Front

What is the formula for calculating total bill with tip?

Back

Total Bill = Original Bill + (Original Bill x Tip Percentage).

Front

What is the difference between sales tax and tip?

Back

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

Front

If a product costs $100 and the sales tax is 5%, what is the total cost?

Back

The total cost would be $105, calculated as $100 + ($100 x 0.05).

Front

How do you convert a percentage to a decimal?

Back

To convert a percentage to a decimal, divide the percentage by 100.

Front

What is the total cost of an item priced at $25 with a 6% sales tax?

Back

The total cost would be $26.50, calculated as $25 + ($25 x 0.06).