Sales Tax and Discounts

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What is sales tax?

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A tax on the selling price of an item or service you purchase.

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How is sales tax calculated?

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Sales tax is calculated by multiplying the selling price of an item by the sales tax rate.

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What is a discount?

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A reduction in the price of a product or service.

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How do you calculate the final price after a discount?

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Final Price = Original Price - (Original Price x Discount Rate).

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What is the difference between a fixed and a variable sales tax?

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A fixed sales tax is a set amount regardless of the price, while a variable sales tax is a percentage of the selling price.

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What is the purpose of sales tax?

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To generate revenue for government services and infrastructure.

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What is a sales tax rate?

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The percentage at which sales tax is charged on the selling price.

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What is the relationship between sales tax and the total cost of an item?

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The total cost of an item includes the selling price plus any applicable sales tax.

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What is a promotional discount?

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A temporary reduction in price to encourage sales, often used in marketing.

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How do you express a discount as a percentage?

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Discount Percentage = (Discount Amount / Original Price) x 100.