Sales Tax, Tips & Discounts

Front

What is sales tax and how is it calculated?

Back

Sales tax is a percentage of the purchase price that is added to the total cost of goods or services. It is calculated by multiplying the purchase price by the sales tax rate (expressed as a decimal).

Front

How do you calculate the total cost of an item including sales tax?

Back

To calculate the total cost including sales tax, multiply the item's price by the sales tax rate to find the tax amount, then add that amount to the original price.

Front

What does a discount represent in a purchase?

Back

A discount represents a reduction in the original price of an item, usually expressed as a percentage.

Front

How do you calculate the sale price of an item after applying a discount?

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To calculate the sale price, multiply the original price by the discount percentage (as a decimal) to find the discount amount, then subtract that amount from the original price.

Front

What is a tip and how is it typically calculated in restaurants?

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A tip is a gratuity given to service workers, often calculated as a percentage of the total bill before tax.

Front

How do you find the tip amount based on a percentage?

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To find the tip amount, multiply the total bill by the tip percentage (expressed as a decimal).

Front

What is the decimal equivalent of a percentage?

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

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How do you calculate the total bill including a tip?

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To calculate the total bill including a tip, first calculate the tip amount based on the original bill, then add the tip amount to the original bill.

Front

What is the formula for calculating sales tax?

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Sales Tax = Purchase Price x Sales Tax Rate.

Front

If an item costs $50 and the sales tax is 6%, what is the total cost?

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Total Cost = $50 + ($50 x 0.06) = $53.