Sales Tax & Discount

Front

What is sales tax?

Back

Sales tax is a percentage of the sale price of goods and services that is collected by the seller and paid to the government.

Front

How do you calculate the total cost including sales tax?

Back

Total Cost = Item Price + (Item Price × Sales Tax Rate)

Front

What is a discount?

Back

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

Front

How do you calculate the final price after a discount?

Back

Final Price = Original Price - (Original Price × Discount Rate)

Front

What is the formula for calculating markup?

Back

Markup = Cost Price × Markup Percentage

Front

How do you find the selling price using markup?

Back

Selling Price = Cost Price + Markup

Front

What is gratuity?

Back

Gratuity, often referred to as a tip, is a sum of money given to service workers for their service, usually expressed as a percentage of the total bill.

Front

How do you calculate gratuity?

Back

Gratuity = Total Bill × Gratuity Rate

Front

If an item costs $100 and is on sale for 20% off, what is the sale price?

Back

Sale Price = $100 - ($100 × 0.20) = $80

Front

What is the relationship between percentage and fractions?

Back

A percentage is a fraction out of 100. For example, 25% is equivalent to 25/100 or 1/4.