Taxes, Tips, Markups, Discounts

Front

What is a discount?

Back

A discount is a reduction in the original price of a product or service.

Front

How do you calculate a discount amount?

Back

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

Front

If a DVD costs $15 and is marked 10% off, what is the discount amount?

Back

$1.50

Front

What is sales tax?

Back

Sales tax is a percentage of the sale price that is added to the cost of a product or service.

Front

How do you calculate sales tax?

Back

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

Front

If a TV costs $899 and the tax rate is 6.5%, how much tax do you pay?

Back

$58.43

Front

What does it mean when a price is marked up?

Back

A markup is an increase in the original price of a product or service.

Front

How do you calculate the total price after a markup?

Back

To calculate the total price after a markup, multiply the original price by the markup percentage (as a decimal) and add it to the original price.

Front

If a book costs $4.25 and has a 30% markup, what is the total price?

Back

$5.53

Front

What is a selling price?

Back

The selling price is the final price at which a product is sold after any discounts or markups.