Sales tax, tip, discount, markup

Front

What is sales tax?

Back

Sales tax is a percentage of the sale price of goods and services that is collected by the seller and paid to the government.

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How do you calculate sales tax?

Back

To calculate sales tax, multiply the sale price by the sales tax rate (as a decimal). For example, for a $100 item with a 5% sales tax, the tax is $100 x 0.05 = $5.

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 a tip?

Back

To calculate a tip, multiply the total bill by the tip percentage (as a decimal). For example, for a $50 bill with a 15% tip, the tip is $50 x 0.15 = $7.50.

Front

What is a discount?

Back

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

Front

How do you calculate a discount?

Back

To calculate a discount, multiply the original price by the discount rate (as a decimal) and subtract that amount from the original price. For example, a 20% discount on a $50 item is $50 x 0.20 = $10, so the sale price is $50 - $10 = $40.

Front

What is markup?

Back

Markup is the amount added to the cost price of goods to cover overhead and profit, usually expressed as a percentage of the cost.

Front

How do you calculate markup?

Back

To calculate markup, multiply the cost price by the markup percentage (as a decimal) and add that amount to the cost price. For example, a 25% markup on a $40 item is $40 x 0.25 = $10, so the selling price is $40 + $10 = $50.

Front

If a pair of jeans costs $19.99 and is marked up by 20%, what is the amount of markup?

Back

$4.00

Front

If a restaurant bill is $36.00 and the tip is 15%, how much should you leave as a tip?

Back

$5.40