Mark ups, Tax, and Tip

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 (expressed as a decimal). For example, for a 20% tip on a $50 bill: $50 x 0.20 = $10.

Front

What is sales tax?

Back

Sales tax is a percentage added to the price 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 (expressed as a decimal). For example, for a $100 item with a 5% tax: $100 x 0.05 = $5.

Front

What is the total cost including tax?

Back

The total cost including tax is the sum of the original price and the sales tax. For example, if an item costs $100 and the tax is $5, the total cost is $105.

Front

If a bill is $80 and the tip is 15%, how much is the tip?

Back

The tip is $12. (Calculation: $80 x 0.15 = $12.)

Front

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

Back

Adding sales tax means increasing the original price by the amount of tax calculated, resulting in a higher total cost.

Front

If a restaurant bill is $50 and you want to leave a 20% tip, how much do you leave?

Back

You leave $10. (Calculation: $50 x 0.20 = $10.)

Front

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

Back

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

Front

If the price of an item is $200 and the sales tax is 8%, what is the total cost?

Back

The total cost is $216. (Calculation: $200 + ($200 x 0.08) = $216.)