Calculating Discounts and Tips

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 the total cost after applying sales tax?

Back

To calculate the total cost after sales tax, multiply the original price by the sales tax rate (as a decimal) and then add that amount to the original price.

Front

If a pair of shoes costs $45 and the sales tax is 7%, what is the total cost?

Back

$48.15

Front

What is a tip?

Back

A tip is a small amount of money given to someone for their service, often 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).

Front

If your restaurant bill is $60 and you want to leave a 15% tip, how much is the tip?

Back

$9

Front

What does markup mean?

Back

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

Front

How do you calculate the new price after a markup?

Back

To calculate the new price after a markup, multiply the original price by the markup percentage (as a decimal) and add that to the original price.

Front

If a jacket is priced at $120 and marked up by 25%, what is the new price?

Back

$150

Front

What is the formula for calculating the new price after a percentage increase?

Back

New Price = Original Price + (Original Price × Percentage Increase)