Tax, Tip, Discount, Commission

Front

What is a commission?

Back

A commission is a fee paid to an employee or agent for services rendered, typically calculated as a percentage of the sales made.

Front

How do you calculate commission?

Back

To calculate commission, multiply the total sales amount by the commission rate (as a decimal). For example, if the sales are $22,540 and the commission rate is 12%, the commission is $22,540 x 0.12 = $2,704.80.

Front

What is sales tax?

Back

Sales tax is a tax imposed by the government on the sale of goods and services, usually calculated as a percentage of the purchase price.

Front

How do you calculate sales tax?

Back

To calculate sales tax, multiply the purchase price by the sales tax rate (as a decimal). For example, for a $899 TV with a 6.5% tax rate, the tax is $899 x 0.065 = $58.43.

Front

What is a tip?

Back

A tip is a small amount of money given to someone for their services, often 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 desired tip percentage (as a decimal). For example, for a $27.31 bill with a 23% tip, the tip is $27.31 x 0.23 = $6.28.

Front

What is a discount?

Back

A discount is a reduction in the price of a product or service, often expressed as a percentage of the original price.

Front

How do you calculate a discount?

Back

To calculate a discount, multiply the original price by the discount rate (as a decimal) and subtract that amount from the original price.

Front

What is the final price after tax?

Back

The final price after tax is the original price plus the sales tax. For example, for a $990 TV with a 9% tax, the final price is $990 + ($990 x 0.09) = $1,079.10.

Front

What is the formula for calculating the final price including tax?

Back

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