Tax, Tip, Discount

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 (expressed as a decimal). For example, for a $25 bill with a 20% tip: $25 x 0.20 = $5.

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 (expressed as a decimal). For example, for a $100 item with a 5% sales tax: $100 x 0.05 = $5.

Front

What is a discount?

Back

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

Front

How do you calculate a discount?

Back

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

Front

If an item costs $50 and has a 10% discount, what is the sale price?

Back

The discount is $50 x 0.10 = $5. The sale price is $50 - $5 = $45.

Front

What is the total cost of an item after applying a discount and adding sales tax?

Back

First, calculate the discounted price, then calculate the sales tax on that price, and finally add the sales tax to the discounted price.

Front

If a sofa costs $599.99 and has a 20% discount, what is the discounted price?

Back

The discount is $599.99 x 0.20 = $119.998. The discounted price is $599.99 - $119.998 = $479.992, rounded to $479.99.

Front

What is the formula for calculating the final price after discount and tax?

Back

Final Price = (Original Price - Discount) + Sales Tax.