Mark-ups, Tax, and Tips

Front

What is a gratuity?

Back

A gratuity, commonly known as a tip, is a sum of money given to service workers for their service, typically calculated as a percentage of the total bill.

Tags

CCSS.RI.6.3

CCSS.RI.6.5

CCSS.RI.7.3

CCSS.RI.7.5

CCSS.RI.8.3

Front

How do you calculate gratuity?

Back

To calculate gratuity, multiply the total bill amount by the gratuity percentage (expressed as a decimal). For example, for an 18% gratuity on a $75.45 bill: $75.45 x 0.18 = $13.58.

Tags

CCSS.6.RP.A.3C

Front

What is a mark-up?

Back

A mark-up is the amount added to the cost price of goods to cover overhead and profit. It is usually expressed as a percentage of the cost price.

Tags

CCSS.6.RP.A.3C

Front

How do you calculate the mark-up percentage?

Back

To calculate the mark-up percentage, subtract the cost price from the selling price, divide by the cost price, and multiply by 100. Formula: ((Selling Price - Cost Price) / Cost Price) x 100.

Tags

CCSS.6.RP.A.3C

Front

If a store buys a computer for $675 and sells it for $1012.50, what is the mark-up percentage?

Back

The mark-up percentage is 167%. Calculation: ((1012.50 - 675) / 675) x 100 = 167%.

Tags

CCSS.6.RP.A.3C

Front

What is sales tax?

Back

Sales tax is a tax imposed by the government on the sale of goods and services, usually calculated as a percentage of the purchase price.

Tags

CCSS.6.RP.A.3B

Front

How do you calculate sales tax?

Back

To calculate sales tax, multiply the purchase price by the sales tax rate (expressed as a decimal). For example, for a $3.50 item with a 5% tax: $3.50 x 0.05 = $0.175.

Tags

CCSS.6.RP.A.3B

Front

If Vicky's total purchases are $15.70 and the sales tax is 5%, what is the total amount she will pay?

Back

The total amount Vicky will pay is $16.49. Calculation: $15.70 + ($15.70 x 0.05) = $16.49.

Tags

CCSS.6.RP.A.3C

Front

What is the formula to find the total cost including tax?

Back

Total Cost = Purchase Price + (Purchase Price x Sales Tax Rate).

Tags

CCSS.6.RP.A.3C

Front

How much tax would you pay on a $899 TV with a tax rate of 6.5%?

Back

The tax paid would be $58.43. Calculation: $899 x 0.065 = $58.43.

Tags

CCSS.7.RP.A.3