Module 2 Flashcard Optional Review

Front

What is sales tax?

Back

Sales tax is a percentage of the price of a product that is added to the total cost when purchasing it. For example, if a product costs $100 and the sales tax is 7%, the total cost would be $107.

Front

How do you calculate sales tax?

Back

To calculate sales tax, multiply the price of the item by the sales tax rate (as a decimal). For example, for a $50 item with a 7% tax rate: $50 x 0.07 = $3.50.

Front

What is the formula to find the total cost with sales tax?

Back

Total Cost = Price + (Price x Sales Tax Rate). For example, for a $20 item with a 5% tax rate: Total Cost = $20 + ($20 x 0.05) = $21.

Front

What is percent change?

Back

Percent change is a way to express how much a quantity has increased or decreased relative to its original value. It is calculated as: ((New Value - Old Value) / Old Value) x 100%.

Front

How do you calculate percent change?

Back

To calculate percent change, subtract the old value from the new value, divide by the old value, and multiply by 100. For example, if a price goes from $50 to $60: ((60 - 50) / 50) x 100 = 20% increase.

Front

What is a tip?

Back

A tip is a small amount of money given to someone for their service, usually 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). For example, for a $30 bill with an 18% tip: $30 x 0.18 = $5.40.

Front

What is the total cost of an item including a tip?

Back

Total Cost = Bill Amount + Tip Amount. For example, if the bill is $50 and the tip is $10, the total cost is $60.

Front

What is the sales tax rate?

Back

The sales tax rate is the percentage of the sale price that is charged as tax. It varies by location and can be found on local government websites.

Front

How do you find the total cost with sales tax?

Back

To find the total cost with sales tax, add the sales tax to the original price. For example, if an item costs $100 and the sales tax is $7, the total cost is $107.