Tax, Tip, Discount

Front

What is tax?

Back

Tax is a mandatory financial charge or levy imposed by a government on individuals or businesses to fund public services and infrastructure.

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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). For example, for a $100 item with a 6% tax rate: $100 x 0.06 = $6.

Front

What is a tip?

Back

A tip is a sum of money given to service workers (like waiters) as a reward 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 (as a decimal). For example, for a $50 bill with a 20% tip: $50 x 0.20 = $10.

Front

What is a discount?

Back

A discount is a reduction in the price of a product or service, often expressed as a percentage of the original price.

Front

How do you calculate a discount?

Back

To calculate a discount, multiply the original price by the discount percentage (as a decimal) and subtract that amount from the original price.

Front

What is the formula for finding the total cost after tax?

Back

Total Cost = Original Price + (Original Price x Tax Rate).

Front

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

Back

Total Cost = $50 + ($50 x 0.08) = $54.

Front

How do you convert a decimal to a percent?

Back

To convert a decimal to a percent, multiply the decimal by 100 and add a percent sign. For example, 0.75 x 100 = 75%.

Front

What is the sales tax on a $200 purchase at a 5% tax rate?

Back

Sales Tax = $200 x 0.05 = $10.