Tax, Tip, Mark up/down, and Discount

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What is tax?

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A tax is a mandatory financial charge or levy imposed by a government on individuals or businesses to fund public services and infrastructure.

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What is a tip?

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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.

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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.

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What is markdown?

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Markdown is a reduction in the original selling price of a product, often used to encourage sales or clear out inventory.

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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 off the original price.

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How do you calculate tax on a purchase?

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To calculate tax, multiply the purchase price by the tax rate (as a decimal). For example, if the price is $100 and the tax rate is 5%, the tax is $100 x 0.05 = $5.

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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 15% tip, the tip is $50 x 0.15 = $7.50.

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How do you calculate markup?

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To calculate markup, subtract the cost price from the selling price, then divide by the cost price and multiply by 100 to get the percentage. For example, if the cost is $20 and the selling price is $30, markup = (($30 - $20) / $20) x 100 = 50%.

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How do you calculate markdown?

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To calculate markdown, subtract the sale price from the original price, then divide by the original price and multiply by 100 to get the percentage. For example, if the original price is $40 and the sale price is $30, markdown = (($40 - $30) / $40) x 100 = 25%.

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What is the difference between a discount and a markdown?

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A discount is a reduction in price offered to customers, while a markdown is a permanent reduction in the selling price of an item.