Taxes & Tips

Front

What is a tip and how is it typically calculated?

Back

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

Front

How do you calculate a percentage of a given amount?

Back

To calculate a percentage, divide the percentage by 100 and multiply it by the amount. For example, to find 15% of $26, calculate 0.15 * 26.

Front

What is sales tax and how is it applied to purchases?

Back

Sales tax is a tax imposed by the government on the sale of goods and services, calculated as a percentage of the purchase price.

Front

How do you calculate the final price of an item including sales tax?

Back

To calculate the final price, multiply the original price by the sales tax rate (as a decimal) and add that amount to the original price.

Front

What is the formula to find the final price after tax?

Back

Final Price = Original Price + (Original Price * Sales Tax Rate).

Front

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

Back

The tip is calculated as 20% of $20, which is $4.

Front

How do you convert a percentage to a decimal?

Back

To convert a percentage to a decimal, divide the percentage by 100. For example, 15% becomes 0.15.

Front

What is the importance of understanding tips and sales tax in everyday transactions?

Back

Understanding tips and sales tax helps consumers accurately calculate total costs and budget for expenses.

Front

If a raincoat costs $39.99 and has a sales tax of 7%, what is the total cost?

Back

Total cost = $39.99 + ($39.99 * 0.07) = $42.79.

Front

What is the difference between gross price and net price?

Back

Gross price includes all taxes and fees, while net price is the amount before any additional charges.