Sales Tax and Tipping Assessment 7

Front

What is sales tax?

Back

Sales tax is a percentage of the price of goods or services that is added to the total cost, 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% sales tax, the calculation is $100 x 0.07 = $7.

Front

What is a tip?

Back

A tip is a small amount of money given to someone for their service, usually calculated as a percentage of the total bill.

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 calculation is $50 x 0.20 = $10.

Front

Convert 6.5% to a decimal.

Back

0.065

Front

Convert 18% to a decimal.

Back

0.18

Front

If a pizza costs $9.75 and you want to leave a 20% tip, how much is the tip?

Back

$1.95 (calculated as $9.75 x 0.20).

Front

If shoes cost $87.50 and the sales tax is 7%, what is the total cost?

Back

$93.63 (calculated as $87.50 + ($87.50 x 0.07)).

Front

If a helicopter costs $263.75 and the sales tax is 6.5%, what is the total cost?

Back

$280.89 (calculated as $263.75 + ($263.75 x 0.065)).

Front

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

Back

Total Cost = Price + (Price x Sales Tax Rate).