Tax, Tip, and Discount

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.

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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 $50 item with an 8% tax rate: $50 x 0.08 = $4.00.

Front

What is a discount?

Back

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

Front

How do you calculate the sale price after a discount?

Back

To find the sale price, subtract the discount amount from the original price. Sale Price = Original Price - Discount Amount.

Front

What is a tip?

Back

A tip is a small amount 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 $100 bill with a 15% tip: $100 x 0.15 = $15.

Front

What does it mean to add sales tax to a price?

Back

Adding sales tax means increasing the total cost of an item by the percentage of the sales tax, resulting in a higher final price.

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What does it mean to subtract a discount from a price?

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Subtracting a discount means reducing the original price by the amount of the discount, resulting in a lower final price.

Front

If an item costs $80 and has a 20% discount, what is the discount amount?

Back

The discount amount is $16. (Calculation: $80 x 0.20 = $16.)

Front

If a meal costs $50 and you want to leave a 20% tip, how much do you leave?

Back

You leave $10 as a tip. (Calculation: $50 x 0.20 = $10.)