Tax, Tip, and Discount

Front

What is sales tax?

Back

Sales tax is a percentage of the sale price of goods or services that is added to the total cost, 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 $100 item with a 5% tax rate: $100 x 0.05 = $5.

Front

What is a tip?

Back

A tip is a small amount of money given to someone 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 15% tip: $50 x 0.15 = $7.50.

Front

What is a discount?

Back

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

Front

How do you calculate the amount saved from a discount?

Back

To calculate the amount saved from a discount, multiply the original price by the discount percentage (as a decimal). For example, for a $40 item with a 20% discount: $40 x 0.20 = $8.

Front

What is the final price after tax?

Back

The final price after tax is the original price plus the sales tax. For example, if an item costs $50 and the sales tax is $5, the final price is $50 + $5 = $55.

Front

If an item costs $80 and has a 10% sales tax, what is the sales tax amount?

Back

The sales tax amount is $8. (Calculation: $80 x 0.10 = $8.)

Front

If you receive a 15% discount on a $60 item, how much do you save?

Back

You save $9. (Calculation: $60 x 0.15 = $9.)

Front

What is the total cost of a $200 meal with a 20% tip?

Back

The total cost is $240. (Calculation: $200 + ($200 x 0.20) = $240.)