Tax & Tip

Front

What is sales tax?

Back

Sales tax is a percentage of the purchase price added to the cost of goods and services, collected by the seller and paid to the government.

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). For example, for a $20 item with a 5% tax rate: $20 x 0.05 = $1.00.

Front

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

Back

Total Cost = Price + (Price x Sales 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

What is a tip?

Back

A tip is a small amount of money given to someone for their service, usually 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 $30 bill with a 15% tip: $30 x 0.15 = $4.50.

Front

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

Back

Total Cost = Bill Amount + (Bill Amount x Tip Percentage).

Front

If a haircut costs $25 and you want to leave a 20% tip, how much do you pay in total?

Back

Total Cost = $25 + ($25 x 0.20) = $30.

Front

What is the difference between sales tax and tip?

Back

Sales tax is a government-imposed charge on purchases, while a tip is a voluntary payment for service.

Front

If a meal costs $40 and the sales tax is 10%, what is the total cost?

Back

Total Cost = $40 + ($40 x 0.10) = $44.