Sales Tax & Tip

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 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.

Front

What is a tip?

Back

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.

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 $50 bill with a 20% tip, the tip is $50 x 0.20 = $10.

Front

What is the formula for finding the final price after sales tax?

Back

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

Front

If a meal costs $30 and you want to leave a 15% tip, how much should you tip?

Back

Tip = $30 x 0.15 = $4.50.

Front

What is the difference between sales tax and a tip?

Back

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

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, 20% becomes 0.20.

Front

What is the total amount owed if the bill is $50 and the sales tax is 8%?

Back

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

Front

If a shirt costs $40 and the sales tax is 10%, what is the total cost?

Back

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