Sales Tax, Discount, Commission, Gratuity & Simple Interest

Front

What is sales tax?

Back

Sales tax is a percentage of the price of goods or services that is added to the total cost at the time of purchase.

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) and then add that amount to the original price.

Front

If an item costs $50 and the sales tax is 5%, how much will you pay in total?

Back

Total cost = $50 + ($50 * 0.05) = $52.50.

Front

What is a discount?

Back

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

Front

How do you calculate the final price after a discount?

Back

To calculate the final price after a discount, subtract the discount amount from the original price.

Front

If a shirt costs $40 and has a 20% discount, what is the final price?

Back

Final price = $40 - ($40 * 0.20) = $32.

Front

What is commission?

Back

Commission is a fee paid to an employee or agent for their services, usually calculated as a percentage of the sales they make.

Front

If a salesperson earns a 10% commission on a $200 sale, how much do they earn?

Back

Commission earned = $200 * 0.10 = $20.

Front

What is gratuity?

Back

Gratuity, often referred to as a tip, is a sum of money given to service workers for their service, typically calculated as a percentage of the total bill.

Front

If you leave a 15% tip on a $50 meal, how much is the tip?

Back

Tip = $50 * 0.15 = $7.50.