Consumer Sales Flashcard

Front

What is gratuity and how is it calculated?

Back

Gratuity, or tip, is a sum of money given to service workers for their service. It is typically calculated as a percentage of the total bill. For example, a 20% gratuity on a $32.85 meal is calculated as $32.85 x 0.20 = $6.57.

Front

How do you calculate the final price after applying a discount?

Back

To calculate the final price after a discount, subtract the discount amount from the original price. For example, for a vase priced at $266.70 with a 10% discount, the discount is $266.70 x 0.10 = $26.67, making the final price $266.70 - $26.67 = $240.03.

Front

What is simple interest and how is it calculated?

Back

Simple interest is calculated using the formula: Interest = Principal x Rate x Time. For example, if Dan borrows $2,000 at a 12% annual interest rate for 6 months, the interest is $2,000 x 0.12 x (6/12) = $120.

Front

How do you determine the best buy among multiple options?

Back

To determine the best buy, compare the final prices after discounts or offers. Calculate the total cost for each option and choose the one with the lowest price.

Front

What is percent change and how is it calculated?

Back

Percent change is calculated using the formula: Percent Change = (New Value - Old Value) / Old Value x 100%. For example, if Vera's average changed from 96 to 91, the percent change is (91 - 96) / 96 x 100% = -5.2%.

Front

What is a coupon and how does it affect pricing?

Back

A coupon is a voucher that provides a discount on a product or service. It reduces the price paid by the consumer, making the purchase more economical.

Front

What does it mean to save a percentage on a purchase?

Back

Saving a percentage means reducing the price by a certain percentage of the original price. For example, saving 10% on a $100 item means paying $90.

Front

How do you calculate the total cost of a meal including gratuity?

Back

To calculate the total cost of a meal including gratuity, first calculate the gratuity as a percentage of the meal cost, then add it to the original meal cost. For example, a $32.85 meal with a 20% gratuity costs $32.85 + $6.57 = $39.42.

Front

What is the difference between a discount and a sale?

Back

A discount is a reduction in price, while a sale is a temporary event where items are sold at reduced prices. Discounts can be applied at any time, while sales are often time-limited.

Front

How do you convert an annual interest rate to a monthly rate?

Back

To convert an annual interest rate to a monthly rate, divide the annual rate by 12. For example, a 12% annual interest rate is 12% / 12 = 1% per month.