Sales Tax and Tipping Assessment 5

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, if an item costs $100 and the sales tax is 8%, the tax is $100 x 0.08 = $8.

Front

What is a tip?

Back

A tip is a small amount of money given to someone for their service, usually in restaurants, as a way to show appreciation.

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 20% tip, the tip is $50 x 0.20 = $10.

Front

What is the total cost of an item including sales tax?

Back

The total cost is the original price of the item plus the sales tax. For example, if an item costs $50 and the sales tax is $4, the total cost is $50 + $4 = $54.

Front

If a dinner costs $100 and you want to leave a 15% tip, how much is the tip?

Back

The tip is $100 x 0.15 = $15.

Front

What is the formula to find the total cost with tip?

Back

Total Cost = Original Price + (Original Price x Tip Percentage)