Sales Tax and Tip Questions

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 the total cost including sales tax?

Back

To calculate the total cost including sales tax, multiply the original price by the sales tax rate (as a decimal), then add that amount to the original price.

Front

What is a gratuity?

Back

A gratuity, commonly known as a tip, is a sum of money given to service workers for their service, typically expressed as a percentage of the total bill.

Front

How do you calculate a tip based on a percentage?

Back

To calculate a tip based on a percentage, multiply the total bill amount by the tip percentage (as a decimal).

Front

What is the formula to find the total cost after adding a tip?

Back

Total Cost = Original Bill + (Original Bill x Tip Percentage) or Total Cost = Original Bill x (1 + Tip Percentage).

Front

If a meal costs $50 and the sales tax is 8%, what is the total cost?

Back

Total Cost = $50 + ($50 x 0.08) = $54.

Front

What is the difference between sales tax and gratuity?

Back

Sales tax is a government-mandated charge on goods and services, while gratuity is a voluntary payment made 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.

Front

If a dinner bill is $30 and you want to leave a 20% tip, how much is the tip?

Back

Tip = $30 x 0.20 = $6.

Front

What is the total cost of a $40 meal with a 15% tip?

Back

Total Cost = $40 + ($40 x 0.15) = $46.