Sales Tax and Tip

Front

What is sales tax?

Back

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

Front

How do you calculate sales tax?

Back

To calculate sales tax, multiply the purchase price by the sales tax rate (as a decimal). For example, for a $10 item with a 5% sales tax: $10 x 0.05 = $0.50.

Front

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

Back

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

Front

If an item costs $20 and the sales tax is 7%, what is the total cost?

Back

Total Cost = $20 + ($20 x 0.07) = $21.40.

Front

What is a tip?

Back

A tip is a small amount of money given to service workers (like waiters) as a reward 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 $50 bill with a 15% tip: $50 x 0.15 = $7.50.

Front

If your restaurant bill is $30 and you want to leave a 20% tip, how much should you tip?

Back

Tip = $30 x 0.20 = $6.00.

Front

What is the total cost if you leave a 15% tip on a $40 bill?

Back

Total Cost = $40 + ($40 x 0.15) = $46.00.

Front

What is the sales tax on a $100 purchase with a 6% sales tax rate?

Back

Sales Tax = $100 x 0.06 = $6.00.

Front

If you buy three items costing $15 each and the sales tax is 5%, what is the total cost?

Back

Total Cost = (3 x $15) + ((3 x $15) x 0.05) = $45 + $2.25 = $47.25.