Sales Tax and Tipping

Front

What is sales tax?

Back

A sales tax is a percentage added to the price of goods and services, collected by the seller and paid to the government.

Front

How do you calculate sales tax?

Back

To calculate sales tax, multiply the price of the item by the sales tax rate (as a decimal).

Front

If an item costs $50 and the sales tax rate is 8%, what is the total cost?

Back

Total cost = $50 + ($50 * 0.08) = $54.

Front

What is a tip?

Back

A tip is a small amount of money given to someone for their service, usually calculated as a percentage of the total bill.

Front

How do you calculate a tip?

Back

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

Front

If your bill is $30 and you want to leave a 15% tip, how much is the tip?

Back

Tip = $30 * 0.15 = $4.50.

Front

What is the formula for calculating total cost including sales tax?

Back

Total Cost = Price + (Price * Sales Tax Rate).

Front

If you buy a $100 item with a 5% sales tax, what is the total amount spent?

Back

Total = $100 + ($100 * 0.05) = $105.

Front

What is the relationship between percentage and decimal?

Back

To convert a percentage to a decimal, divide by 100 (e.g., 20% = 0.20).

Front

If you pay $22 for a meal and leave a 20% tip, how much do you pay in total?

Back

Total = $22 + ($22 * 0.20) = $26.40.