Tax, Tip, Discount

Front

What is sales tax?

Back

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

Front

How do you calculate sales tax?

Back

To calculate sales tax, multiply the sale price by the sales tax rate (as a decimal). For example, if the price is $100 and the tax rate is 6%, the tax is $100 x 0.06 = $6.

Front

What is a discount?

Back

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

Front

How do you calculate a discount?

Back

To calculate a discount, multiply the original price by the discount rate (as a decimal). For example, if a jacket costs $50 and has a 20% discount, the discount is $50 x 0.20 = $10.

Front

What is the total cost after tax?

Back

The total cost after tax is the original price plus the sales tax. For example, if an item costs $50 and the sales tax is $3, the total cost is $50 + $3 = $53.

Front

How do you convert a decimal to a percent?

Back

To convert a decimal to a percent, multiply the decimal by 100 and add a percent sign. For example, 0.75 becomes 75%.

Front

What is the formula for calculating the total bill including tax?

Back

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

Front

If an item costs $80 and the sales tax is 5%, what is the total bill?

Back

Total Bill = $80 + ($80 x 0.05) = $80 + $4 = $84.

Front

If a jacket originally costs $60 and is on sale for 25% off, what is the sale price?

Back

Sale Price = Original Price - (Original Price x Discount Rate) = $60 - ($60 x 0.25) = $60 - $15 = $45.

Front

What is the difference between a tip and a tax?

Back

A tip is a voluntary amount given for service, while a tax is a mandatory charge imposed by the government.