Sales Tax & Tip

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

To calculate sales tax, multiply the sale price by the sales tax rate (as a decimal). For example, if the sale price is $100 and the sales tax rate is 5%, the sales tax is $100 x 0.05 = $5.

A tip is a sum of money given to service workers in addition to the base price of a service, typically expressed as a percentage of the total bill.

To calculate a tip, multiply the total bill by the tip percentage (as a decimal). For example, for a $50 bill with a 20% tip, the tip is $50 x 0.20 = $10.

Final Price = Sale Price + (Sale Price x Sales Tax Rate).

Tip = $30 x 0.15 = $4.50.

Sales tax is a government-mandated charge on goods and services, while a tip is a voluntary payment to service workers for their service.

To convert a percentage to a decimal, divide the percentage by 100. For example, 20% becomes 0.20.

Total Amount = $50 + ($50 x 0.08) = $50 + $4 = $54.

Total Cost = $40 + ($40 x 0.10) = $40 + $4 = $44.