Tax, Tip, Discount, Commission

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 $27.31 bill with a 23% tip: $27.31 x 0.23 = $6.28.

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 is sales tax calculated?

Back

To calculate sales tax, multiply the price of the item by the sales tax rate (as a decimal). For example, for a $899 TV with a 6.5% tax: $899 x 0.065 = $58.43.

Front

What is a discount?

Back

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

Front

How do you calculate a discount?

Back

To calculate a discount, multiply the original price by the discount percentage (as a decimal) and subtract that amount from the original price.

Front

What does it mean to convert a percentage to a decimal?

Back

To convert a percentage to a decimal, divide the percentage by 100. For example, 3.2% becomes 0.032.

Front

What is commission?

Back

Commission is a fee paid to an employee or agent based on the sales they generate, often expressed as a percentage of the sale.

Front

How do you calculate commission?

Back

To calculate commission, multiply the total sales amount by the commission rate (as a decimal). For example, for $1,000 in sales with a 5% commission: $1,000 x 0.05 = $50.

Front

What is the formula for calculating total cost including tax?

Back

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