Taxes, Tips, Markup & Markdown

Front

What is a tax?

Back

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

Front

What is a tip?

Back

A tip is a small amount of money given to someone for their service, typically in the hospitality industry, as a way to show appreciation.

Front

What is markup?

Back

Markup is the amount added to the cost price of goods to cover overhead and profit, usually expressed as a percentage.

Front

What is markdown?

Back

Markdown is a reduction in the original selling price of a product, often used to encourage sales.

Front

How do you calculate sales tax?

Back

Sales tax is calculated by multiplying the price of an item by the sales tax rate (as a decimal).

Front

If an item costs $100 and the sales tax is 5%, what is the total cost?

Back

Total cost = $100 + ($100 * 0.05) = $105.

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

If your bill is $50 and you want to leave a 15% tip, how much is the tip?

Back

Tip = $50 * 0.15 = $7.50.

Front

What is the formula for calculating the final price after a discount?

Back

Final Price = Original Price - (Original Price * Discount Rate).

Front

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

Back

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