Consumer Math

Front

What is a tip?

Back

A tip is a small amount of money given to someone for their service, typically 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 (expressed as a decimal). For example, for a 20% tip on a $20 bill: $20 x 0.20 = $4.

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 sales tax?

Back

To calculate sales tax, multiply the price of the item by the sales tax rate (expressed as a decimal). For example, for a $675 computer with a 6% tax: $675 x 0.06 = $40.50.

Front

What is the total cost of an item including tax?

Back

The total cost is the sum of the item's price and the sales tax. For example, if a computer costs $675 and the tax is $40.50, the total cost is $675 + $40.50 = $715.50.

Front

How do you find the total bill after adding a tip?

Back

To find the total bill after adding a tip, add the tip amount to the original bill. For example, if the bill is $30 and the tip is $4.50, the total bill is $30 + $4.50 = $34.50.

Front

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

Back

Adding sales tax means increasing the original price of an item by the percentage of the sales tax, resulting in a higher total amount to be paid.

Front

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

Back

Total Cost = Price + (Price x Sales Tax Rate). For example, for a $899 TV with a 6.5% tax: Total Cost = $899 + ($899 x 0.065) = $957.44.

Front

What is a percentage?

Back

A percentage is a way of expressing a number as a fraction of 100. It is often used to describe proportions, such as tips and sales tax.

Front

How do you convert a percentage to a decimal?

Back

To convert a percentage to a decimal, divide the percentage by 100. For example, 20% becomes 0.20.