Interest, sales taxes and mark ups

Front

What is sales tax?

Back

Sales tax is a percentage of the purchase price added to the total cost of goods or services, 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 purchase price by the sales tax rate (as a decimal) and add that amount to the original price.

Front

If an item costs $50 and the sales tax is 5%, what is the total cost?

Back

Total cost = $50 + ($50 * 0.05) = $52.50.

Front

What is a markup?

Back

Markup is the amount added to the cost price of goods to cover overhead and profit.

Front

How do you calculate the selling price with a markup?

Back

Selling Price = Cost Price + (Cost Price * Markup Percentage).

Front

If a shirt costs $20 and has a markup of 25%, what is the selling price?

Back

Selling Price = $20 + ($20 * 0.25) = $25.

Front

What is a tip?

Back

A tip is a sum of money given to someone for their service, typically calculated 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).

Front

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

Back

Tip = $30 * 0.15 = $4.50.

Front

What is the total cost of a meal if the bill is $30 and a 15% tip is added?

Back

Total cost = $30 + ($30 * 0.15) = $34.50.