calculating tax

Front

What is tax?

Back

A tax is a mandatory financial charge or levy imposed by a government on individuals or businesses to fund public services and infrastructure.

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What is sales tax?

Back

Sales tax is a tax imposed on the sale of goods and services, usually calculated as a percentage of the purchase price.

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 5% tax rate: $100 x 0.05 = $5.

Front

What is the formula to find the total cost including tax?

Back

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

Front

If an item costs $50 and the sales tax is 8%, what is the total cost?

Back

Total Cost = $50 + ($50 x 0.08) = $54.

Front

What does 'discount' mean?

Back

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

Front

How do you calculate the amount saved from a discount?

Back

To calculate the amount saved, multiply the original price by the discount rate (as a decimal).

Front

If a shirt costs $30 and has a 20% discount, how much do you save?

Back

Amount Saved = $30 x 0.20 = $6.

Front

What is the final price after applying a discount?

Back

Final Price = Original Price - Amount Saved.

Front

If an item costs $40 and has a 25% discount, what is the final price?

Back

Final Price = $40 - ($40 x 0.25) = $30.