Tip, Tax and Discounts

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 the sale price after a discount?

Back

Sale Price = Original Price - (Original Price x Discount Rate)

Front

What is a markup?

Back

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

Front

How do you calculate the selling price after a markup?

Back

Selling Price = Cost Price + (Cost Price x Markup Rate) or Selling Price = Cost Price x (1 + Markup Rate)

Front

What is sales tax?

Back

Sales tax is a tax imposed by the government on the sale of goods and services, usually calculated as a percentage of the sale price.

Front

How do you calculate sales tax?

Back

Sales Tax = Sale Price x Sales Tax Rate

Front

What is the formula to find the discount amount?

Back

Discount Amount = Original Price x Discount Rate

Front

If a jacket costs $62.00 and has a 15% discount, what is the discount amount?

Back

Discount Amount = $62.00 x 0.15 = $9.30

Front

If a bicycle originally costs $175 and is discounted by 25%, what is the sale price?

Back

Sale Price = $175 - ($175 x 0.25) = $131.25

Front

If a computer costs $385 and has a 30% discount, what is the total amount spent?

Back

Total Amount = $385 - ($385 x 0.30) = $269.50