Sales Tax, Tips, and Markups (7th)

Front

What is sales tax?

Back

Sales tax is a percentage of the purchase price that is added to the total cost of goods or services. 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 total price of the item by the sales tax rate (as a decimal). For example, for a $35.50 item with a 4.5% sales tax, the calculation is $35.50 x 0.045 = $1.60.

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 (as a decimal). For example, for a $20 lunch with a 20% tip, the calculation is $20 x 0.20 = $4.

Front

What does it mean to 'mark up' a price?

Back

To 'mark up' a price means to increase the original price of an item to cover costs and make a profit.

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How do you convert a percentage to a decimal?

Back

To convert a percentage to a decimal, divide the percentage by 100. For example, 8.25% as a decimal is 8.25 ÷ 100 = 0.0825.

Front

What is the formula for calculating the final price after a discount?

Back

The final price after a discount can be calculated using the formula: Final Price = Original Price - (Original Price x Discount Rate).

Front

If an item costs $34.00 and has a 30% discount, what is the discount amount?

Back

The discount amount is calculated as $34.00 x 0.30 = $10.20.

Front

What is the final price of an item after applying a discount?

Back

To find the final price after a discount, subtract the discount amount from the original price. For example, $34.00 - $10.20 = $23.80.

Front

What does it mean to 'add' a tip to a total?

Back

Adding a tip to a total means to increase the total amount owed by the tip amount, resulting in a higher final payment.