Tax and Tip

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 (expressed as a decimal). For example, for a 20% tip on a $20 bill: $20 x 0.20 = $4.

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 sales tax?

Back

To calculate sales tax, multiply the price of the item by the sales tax rate (expressed as a decimal). For example, for a $899 TV with a 6.5% tax: $899 x 0.065 = $58.43.

Front

What is the total cost including tax?

Back

The total cost including tax is the sum of the original price and the sales tax. For example, if a TV costs $899 and the tax is $58.43, the total cost is $899 + $58.43 = $957.43.

Front

What is a percent of change?

Back

Percent of change measures how much a quantity has increased or decreased relative to its original value, expressed as a percentage.

Front

How do you calculate percent of change?

Back

Percent of change = (New Value - Original Value) / Original Value x 100%. For example, if a price increases from $100 to $120: (120 - 100) / 100 x 100% = 20%.

Front

What is the formula for calculating a 10% tip?

Back

To calculate a 10% tip, multiply the total bill by 0.10. For example, for a $23.77 dinner: $23.77 x 0.10 = $2.38.

Front

If a meal costs $23.77 and you leave a 10% tip, what is the total cost?

Back

Total cost = Meal cost + Tip. For a $23.77 meal with a $2.38 tip, total cost = $23.77 + $2.38 = $26.15.

Front

What does it mean to leave a 20% tip on a $20 lunch?

Back

Leaving a 20% tip means you give an additional $4 on top of the $20 lunch bill, calculated as $20 x 0.20.