Tax and Tip

Front

What is sales tax?

Back

A sales tax is a percentage of the sale price added to the cost of goods and services, collected by the seller and paid to the government.

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 $10 item with a 6% tax rate: $10 x 0.06 = $0.60.

Front

What is the formula to find the total cost including tax?

Back

Total Cost = Item Price + (Item Price x Sales Tax Rate).

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 $50 bill with a 20% tip: $50 x 0.20 = $10.

Front

What does 'added to' mean in the context of tips?

Back

'Added to' means that the tip is added to the total cost of the service, increasing the amount paid.

Front

If a meal costs $30 and you want to leave a 15% tip, how much is the tip?

Back

The tip would be $30 x 0.15 = $4.50.

Front

What is the total cost if a $50 meal has a 10% sales tax?

Back

Total Cost = $50 + ($50 x 0.10) = $50 + $5 = $55.

Front

What is the difference between sales tax and tip?

Back

Sales tax is a government-imposed charge on sales, while a tip is a voluntary payment for service.

Front

If an item costs $20 and the sales tax is 5%, what is the total cost?

Back

Total Cost = $20 + ($20 x 0.05) = $20 + $1 = $21.