Sales Tax and Discounts Concepts

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 point of sale.

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

What is a tip?

Back

A tip is a sum of money given to someone for their service, typically 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

What is a discount?

Back

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

Front

How do you calculate the total after a discount?

Back

To find the total after a discount, subtract the discount amount from the original price.

Front

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

Back

Total Bill = Original Price + (Original Price x Sales Tax Rate).

Front

If an item costs $100 and has a 10% sales tax, what is the total cost?

Back

Total Cost = $100 + ($100 x 0.10) = $110.

Front

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

Back

Adding sales tax means increasing the original price by a certain percentage to account for tax obligations.

Front

What is the difference between gross and net price?

Back

Gross price includes all taxes and fees, while net price is the amount after discounts and before taxes.