Tax And Tip

Front

What is tax?

Back

Tax is a percentage of the price of a good or service that is added to the total cost, collected by the government.

Front

How do you calculate the tax amount?

Back

To calculate the tax amount, multiply the original price by the tax rate (as a decimal). For example, for a $15.25 item with a 7% tax rate: $15.25 x 0.07 = $1.07.

Front

What is a tip?

Back

A tip is an additional amount of money given to service workers, 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 20% tip: $100 x 0.20 = $20.

Front

Can tax and tip be added to a bill?

Back

Yes, both tax and tip can be added to the original bill to find the final amount.

Front

What is the final bill if the original bill is $100, tax is 8%, and tip is 20%?

Back

Final bill = Original bill + Tax + Tip = $100 + ($100 x 0.08) + ($100 x 0.20) = $128.

Front

What does it mean to calculate the total purchase price including tax?

Back

It means to find the final amount paid after adding the tax to the original price.

Front

If a car costs $14,999 and the tax rate is 6%, what is the total cost?

Back

Total cost = $14,999 + ($14,999 x 0.06) = $15,898.94.

Front

Is a tip subtracted from the final bill?

Back

No, a tip is added to the final bill.

Front

What is the tax amount on a $50 purchase with a 10% tax rate?

Back

Tax amount = $50 x 0.10 = $5.