Tax, Discounts, Gratuity, Markup

Front

What is the formula to calculate the percentage increase in price?

Back

Percentage Increase = ((New Price - Original Price) / Original Price) * 100

Front

If a sweater costs $30 and is on sale for 25% off, how do you calculate the sale price?

Back

Sale Price = Original Price - (Discount Percentage * Original Price) = $30 - (0.25 * $30) = $22.50

Front

What does it mean when sales tax is added to the price?

Back

Sales tax is an additional amount charged on the original price of a product, calculated as a percentage of that price.

Front

How do you calculate the final price after applying a discount?

Back

Final Price = Original Price - Discount Amount.

Front

What is the difference between a discount and a markup?

Back

A discount reduces the price of an item, while a markup increases the price above the cost.

Front

How do you convert a percentage to a decimal?

Back

To convert a percentage to a decimal, divide the percentage by 100.

Front

What is the effect of a 10% markup on an item that costs $50?

Back

Markup Amount = Cost * Markup Percentage = $50 * 0.10 = $5. Final Price = Cost + Markup Amount = $50 + $5 = $55.

Front

What is the purpose of gratuity in a service context?

Back

Gratuity is a voluntary payment given for services rendered, typically as a percentage of the total bill.

Front

How do you calculate the total cost including tax if the item costs $40 and the sales tax is 8%?

Back

Total Cost = Original Price + (Sales Tax Percentage * Original Price) = $40 + (0.08 * $40) = $43.20.

Front

What is the formula for calculating the discount amount?

Back

Discount Amount = Original Price * Discount Percentage.