Tax, Tip and Discount

Front

What is a gratuity?

Back

A gratuity, often referred to as a tip, is a sum of money given to service workers for their service, typically calculated as a percentage of the total bill.

Front

How do you calculate gratuity?

Back

To calculate gratuity, multiply the total bill amount by the gratuity percentage (expressed as a decimal). For example, for an 18% gratuity on a $75 bill: $75 x 0.18 = $13.50.

Front

What is a discount?

Back

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

Front

How do you calculate the sale price after a discount?

Back

To find the sale price, subtract the discount amount from the original price. Discount amount = Original Price x Discount Percentage.

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 total price of the item by the sales tax rate (expressed as a decimal). For example, for a 9% tax on a $199.95 item: $199.95 x 0.09 = $17.995.

Front

What is the formula for finding the final price after tax?

Back

Final Price = Original Price + (Original Price x Sales Tax Rate).

Front

If an item costs $85 and is on sale for 40% off, how much do you pay?

Back

Sale Price = Original Price - (Original Price x Discount Percentage). Sale Price = $85 - ($85 x 0.40) = $51.

Front

What is the final price of an item after applying a 15% discount on a $45 jacket?

Back

Final Price = Original Price - (Original Price x Discount Percentage). Final Price = $45 - ($45 x 0.15) = $38.25.

Front

If Sara bought $124.50 worth of items with a 35% discount, what is her final bill?

Back

Final Bill = Original Price - (Original Price x Discount Percentage). Final Bill = $124.50 - ($124.50 x 0.35) = $80.92.