REVIEW: Sales tax & rounding money, with a sprinkle of fractions

Front

What is sales tax?

Back

Sales tax is a percentage of the purchase price that is added to the total cost of an item. It is 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 7% sales tax, the tax is $100 x 0.07 = $7.

Front

What is the formula for finding the total cost including sales tax?

Back

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

Front

What does 'rounding to the nearest penny' mean?

Back

Rounding to the nearest penny means adjusting a monetary amount to two decimal places, where the second decimal place represents cents.

Front

How do you round a number to the nearest hundredth?

Back

Look at the third decimal place: if it is 5 or more, round up the second decimal place by one. If it is less than 5, keep the second decimal place the same.

Front

What is a subtotal?

Back

A subtotal is the total amount before any taxes or additional fees are added.

Front

If an item costs $15.79 and you buy 4 of them, what is the subtotal?

Back

The subtotal is $15.79 x 4 = $63.16.

Front

How do you find the total cost after sales tax?

Back

First, calculate the subtotal, then calculate the sales tax on that subtotal, and finally add the sales tax to the subtotal.

Front

What is the total cost of a $15.99 item with 7% sales tax?

Back

Total Cost = $15.99 + ($15.99 x 0.07) = $15.99 + $1.12 = $17.11.

Front

What is the sales tax on a $63.16 subtotal at 7%?

Back

Sales Tax = $63.16 x 0.07 = $4.42.