Tax and Tip Practice

Front

What is sales tax?

Back

Sales tax is a percentage of the sale 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). For example, for a $100 item with a 6.5% tax, the tax is $100 x 0.065 = $6.50.

Front

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

Back

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

Front

If an item costs $50 and the sales tax is 8%, what is the total cost?

Back

Total Cost = $50 + ($50 x 0.08) = $54.

Front

What is a tip?

Back

A tip is a small amount of money given to someone for their service, typically calculated as a percentage of the total bill before tax.

Front

How do you calculate a tip?

Back

To calculate a tip, multiply the subtotal (before tax) by the tip percentage (as a decimal). For example, for a $40 meal with a 15% tip, the tip is $40 x 0.15 = $6.

Front

What is the difference between tax and tip?

Back

Tax is a mandatory charge imposed by the government on purchases, while a tip is a voluntary payment for service.

Front

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

Back

Tip = $30 x 0.20 = $6.

Front

What is the total cost of a $250 bicycle with a 6.5% sales tax?

Back

Total Cost = $250 + ($250 x 0.065) = $266.25.

Front

What is the correct percent equation to find an 8% tax on an item costing $34.92?

Back

p = 0.08 (34.92).