7th Grade Math Milestone Review - Taxes, Discounts, Markups and Tips

Front

What is sales tax?

Back

Sales tax is a percentage of the purchase price that is added to the total cost of goods or services. It 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) and then 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) = $50 + $2.50 = $52.50.

Front

What is a tip?

Back

A tip is a small amount of money given to someone for their service, typically in the hospitality industry, as a way to show appreciation.

Front

How do you calculate a tip based on a meal's cost?

Back

To calculate a tip, multiply the cost of the meal by the tip percentage (as a decimal).

Front

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

Back

Tip = $30 * 0.20 = $6.

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 the sale price after a discount?

Back

To calculate the sale price, subtract the discount amount from the original price.

Front

If an item costs $80 and has a 25% discount, what is the sale price?

Back

Discount = $80 * 0.25 = $20; Sale price = $80 - $20 = $60.

Front

What is a markup?

Back

A markup is an increase in the price of a product or service, typically added to cover costs and generate profit.