Sales tax, tip, discount, markup, error and change

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What is sales tax?

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

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How do you calculate sales tax?

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

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What is a tip?

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A tip is a small amount of money given to service workers (like waiters) as a reward for good service, usually calculated as a percentage of the total bill.

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How do you calculate a tip?

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To calculate a tip, multiply the total bill by the tip percentage (as a decimal). For example, for a $50 bill with a 20% tip: $50 x 0.20 = $10.

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What is a discount?

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

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How do you calculate the amount of a discount?

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To calculate a discount, multiply the original price by the discount percentage (as a decimal). For example, for a $100 item with a 25% discount: $100 x 0.25 = $25.

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What is markup?

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

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How do you calculate markup?

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To calculate markup, multiply the cost price by the markup percentage (as a decimal). For example, for a $50 item with a 40% markup: $50 x 0.40 = $20.

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What is percent change?

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Percent change is a measure of how much a quantity has increased or decreased relative to its original value, expressed as a percentage.

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How do you calculate percent change?

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To calculate percent change, subtract the original amount from the new amount, divide by the original amount, and multiply by 100. Formula: ((New - Original) / Original) x 100.