Sales Tax and Tipping Assessment

Front

What is sales tax?

Back

Sales tax is a percentage of the price of a product that is added to the total cost when purchasing it. It is collected by the seller and paid to the government.

Front

How do you calculate sales tax?

Back

To calculate sales tax, multiply the price of the item by the sales tax rate (as a decimal). For example, for a $100 item with a 7% tax rate, the tax is $100 x 0.07 = $7.

Front

What is the formula to find the total cost including tax?

Back

Total Cost = Price + (Price x Sales Tax Rate). For example, if an item costs $50 and the tax rate is 5%, Total Cost = $50 + ($50 x 0.05) = $52.50.

Front

Convert 7.5% into a decimal.

Back

0.075

Front

If an item costs $200 and the sales tax is 8%, what is the total cost?

Back

Total Cost = $200 + ($200 x 0.08) = $216.

Front

What is tipping?

Back

Tipping is giving extra money to service workers, usually as a percentage of the total bill, to show appreciation for their service.

Front

How do you calculate a tip?

Back

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.

Front

Convert 15% into a decimal.

Back

0.15

Front

If a restaurant bill is $80 and you want to leave a 20% tip, how much is the tip?

Back

Tip = $80 x 0.20 = $16.

Front

What is the difference between sales tax and tip?

Back

Sales tax is a mandatory charge added to purchases, while a tip is a voluntary amount given for service.