Tax, Tip and Discount

Front

What is sales tax?

Back

Sales tax is a percentage of the purchase price added to the total cost of an item, collected by the seller and paid to the government.

Front

How do you calculate the total cost of an item including sales tax?

Back

To calculate the total cost, multiply the item's price by the sales tax rate (as a decimal), then add that amount to the original price.

Front

What is a tip?

Back

A tip is a small amount of money given to service workers, typically calculated as a percentage of the total bill.

Front

How do you calculate a tip?

Back

To calculate a tip, multiply the total bill amount by the tip percentage (as a decimal).

Front

What is a discount?

Back

A discount is a reduction in the price of an item, usually expressed as a percentage of the original price.

Front

How do you calculate the sale price after a discount?

Back

To find the sale price, multiply the original price by the discount percentage (as a decimal) to find the discount amount, then subtract that from the original price.

Front

If an item costs $100 and has a 10% discount, what is the sale price?

Back

The sale price is $90. (Discount: $10, Sale Price: $100 - $10)

Front

What is the formula for calculating total cost with tax?

Back

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

Front

If a meal costs $50 and the tip is 20%, how much is the tip?

Back

The tip is $10. (Tip: $50 x 0.20)

Front

What is the difference between a tip and a discount?

Back

A tip is given for service, while a discount reduces the price of a product or service.