Tax, Tip, Discount Practice

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 25% tip on a $38.47 meal, calculate 38.47 x 0.25.

Front

What is a discount?

Back

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

Front

How do you calculate a discount?

Back

To calculate a discount, multiply the original price by the discount percentage (as a decimal). For example, for a 20% discount on a $399 PS4, calculate 399 x 0.20.

Front

What is sales tax?

Back

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

Front

How do you calculate total cost including sales tax?

Back

To calculate total cost, multiply the original price by the sales tax rate (as a decimal) and add it to the original price. For example, for a $675 computer with 7% tax, calculate 675 x 0.07 + 675.

Front

What is the formula for calculating total cost with tax?

Back

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

Front

If a meal costs $38.47 and you want to leave a 25% tip, how much is the tip?

Back

The tip would be $9.62.

Front

If a PS4 costs $399 and there is a 20% discount, what is the discount amount?

Back

The discount amount is $79.80.

Front

If an iPhone 7 costs $649.00 and the tax rate is 7%, what is the total cost?

Back

The total cost would be $694.43.