Tax and Tip

Front

What is a tax?

Back

A tax is a mandatory financial charge or levy imposed by a government on individuals or businesses to fund public services and infrastructure.

Front

What is a tip?

Back

A tip is a small amount of money given to someone for their service, typically in the hospitality industry, as a way to show appreciation.

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 5% tax, the tax is $100 x 0.05 = $5.

Front

What is the formula for finding 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 does 'discount' mean?

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 final price after a discount?

Back

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

Front

If a shirt costs $40 and has a 20% discount, what is the final price?

Back

Final Price = $40 - ($40 x 0.20) = $32.

Front

What is a markup?

Back

A markup is an increase in the price of a product, often expressed as a percentage of the cost price.

Front

How do you calculate the percent markup?

Back

Percent Markup = ((Selling Price - Cost Price) / Cost Price) x 100.