4/8 Sales Tax

Front

What is sales tax?

Back

Sales tax is a percentage of the sale price of goods and services that is collected by the seller and paid to the government.

Front

How do you calculate sales tax?

Back

To calculate sales tax, multiply the price of the item by the sales tax rate (as a decimal). For example, if an item costs $100 and the sales tax rate is 6%, the sales tax would be $100 x 0.06 = $6.

Front

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

Back

Total cost = Item cost + Sales tax. For $50 with 8% sales tax: Sales tax = $50 x 0.08 = $4. Total cost = $50 + $4 = $54.

Front

What is the formula to find the total amount spent including sales tax?

Back

Total Amount = Price of Item + (Price of Item x Sales Tax Rate).

Front

If a pair of shoes costs $120 and the sales tax is 7%, how much is the sales tax?

Back

Sales tax = $120 x 0.07 = $8.40.

Front

What is the sales tax on a $25 McDonald's Bundle with an 8% tax rate?

Back

Sales tax = $25 x 0.08 = $2.00.

Front

How do you convert a percentage to a decimal for calculations?

Back

To convert a percentage to a decimal, divide the percentage by 100. For example, 7% becomes 0.07.

Front

What is the income tax rate applied to an annual income of $251,200 if it is 7%?

Back

Income tax = Annual Income x Income Tax Rate. For $251,200 at 7%, Income tax = $251,200 x 0.07 = $17,584.

Front

How many phone calls can scam callers make in 2 hours if they make 65 calls in 5 hours?

Back

Rate of calls = 65 calls / 5 hours = 13 calls per hour. In 2 hours, they can make 13 x 2 = 26 calls.

Front

What is the importance of understanding sales tax in everyday purchases?

Back

Understanding sales tax helps consumers know the total cost of their purchases and budget accordingly.