Tax, Tip, & Discount Practice

Front

What is sales tax?

Back

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

Front

How do you calculate the total cost including sales tax?

Back

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

Front

What is a tip?

Back

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

Front

How do you calculate a tip?

Back

Tip = Total Bill x Tip Percentage

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 the sale price after a discount?

Back

Sale Price = Original Price - (Original Price x Discount Rate)

Front

What is the difference between a tax and a tip?

Back

A tax is a mandatory charge imposed by the government, while a tip is a voluntary payment for service.

Front

If an item costs $50 and has a sales tax of 8%, what is the total cost?

Back

Total Cost = $50 + ($50 x 0.08) = $54.

Front

If a meal costs $30 and you want to leave a 20% tip, how much is the tip?

Back

Tip = $30 x 0.20 = $6.

Front

What is the formula to find the amount saved by choosing a lower sales tax rate?

Back

Amount Saved = Purchase Price x (Higher Tax Rate - Lower Tax Rate)