12/5 - Sales Tax/Tip Review Part 2

Front

What is sales tax?

Back

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

Front

How do you calculate the total cost including sales tax?

Back

To calculate the total cost including sales tax, multiply the original price by the sales tax rate (as a decimal) and then add that amount to the original price. Formula: Total Cost = Original Price + (Original Price * Sales Tax Rate).

Front

If a T.V. costs $990 and the sales tax is 9%, what is the total cost?

Back

Total Cost = $990 + ($990 * 0.09) = $1,079.10.

Front

What is a tip or gratuity?

Back

A tip or gratuity is an amount of money given to service workers (like waiters) as a reward 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). Formula: Tip = Total Bill * Tip Percentage.

Front

If your meal costs $52 and you want to leave a 20% tip, how much is the tip?

Back

Tip = $52 * 0.20 = $10.40.

Front

What is the total bill if the meal costs $52 and you leave a 20% tip?

Back

Total Bill = $52 + $10.40 = $62.40.

Front

If Daniel's meal costs $28.00 and he leaves a 20% tip, what is his total bill?

Back

Tip = $28.00 * 0.20 = $5.60. Total Bill = $28.00 + $5.60 = $33.60.

Front

What does it mean to 'round to the nearest hundredth'?

Back

Rounding to the nearest hundredth means adjusting a number to two decimal places, where the third decimal place determines whether to round up or down.

Front

If a T.V. costs $1050 and the tax rate is 6.5%, what is the total cost?

Back

Total Cost = $1050 + ($1050 * 0.065) = $1,118.25.