Tax, Tip, Discount, Commission

Front

What is a 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.

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 6.5% tax rate, the tax is $100 x 0.065 = $6.50.

Front

What is a tip?

Back

A tip is a sum of money given to service workers (like waiters) as a reward for good 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 $50 bill with a 20% tip, the tip is $50 x 0.20 = $10.

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 a commission?

Back

A commission is a fee paid to an agent or employee for facilitating a sale, usually calculated as a percentage of the sale amount.

Front

How do you convert a percentage to a decimal?

Back

To convert a percentage to a decimal, divide the percentage by 100. For example, 25% becomes 0.25.

Front

What is the final price after tax?

Back

The final price after tax is calculated by adding the sales tax to the original price. For example, if an item costs $100 and the tax is $6.50, the final price is $100 + $6.50 = $106.50.

Front

If a TV costs $899 and the tax rate is 6.5%, how much tax do you pay?

Back

You pay $58.43 in tax.