Sales Tax & Tip

Front

What is sales tax?

Back

Sales tax is a percentage of the price of goods or services that is added to the total cost at the time of purchase.

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).

Front

If an item costs $50 and the sales tax is 10%, how much is the sales tax?

Back

$5.00 (calculated as $50 x 0.10).

Front

What is the final price of an item after sales tax?

Back

Final price = Original price + Sales tax.

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).

Front

If a restaurant bill is $40 and you want to leave a 15% tip, how much is the tip?

Back

$6.00 (calculated as $40 x 0.15).

Front

What is the total bill if you leave a 20% tip on a $25 bill?

Back

$30.00 (calculated as $25 + $5 tip).

Front

What does it mean to add sales tax to a price?

Back

It means to increase the original price by the amount of sales tax before making the final payment.

Front

If the sales tax is 8% and the total cost is $108, what was the original price?

Back

$100 (calculated as $108 / 1.08).