Tax, Tip, Discount

Front

What is a tip?

Back

A tip is a small amount of money given to someone for their service, typically in the hospitality industry, as a way to show appreciation.

Front

How do you calculate a tip?

Back

To calculate a tip, multiply the total bill amount by the tip percentage (as a decimal). For example, for a $27.31 bill with a 23% tip: $27.31 x 0.23 = $6.28.

Front

What is a discount?

Back

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

Front

How do you calculate a discount?

Back

To calculate a discount, multiply the original price by the discount percentage (as a decimal) and subtract that amount from the original price.

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 price of the item by the sales tax rate (as a decimal). For example, for a $899 TV with a 6.5% tax: $899 x 0.065 = $58.44.

Front

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

Back

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

Front

What does it mean to convert a percentage to a decimal?

Back

To convert a percentage to a decimal, divide the percentage by 100. For example, 8.25% becomes 0.0825.

Front

How do taxes affect the total price of an item?

Back

Taxes are added to the price of the item, increasing the total amount paid by the consumer.

Front

If an item costs $22.00 and is discounted by 25%, how much do you save?

Back

You save $5.50. (Calculation: $22.00 x 0.25 = $5.50).