Sales Tax and Tipping Assessment 8

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 convert a percentage to a decimal?

Back

To convert a percentage to a decimal, divide the percentage by 100. For example, 18% becomes 0.18.

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, you would calculate $50 x 0.20 = $10.

Front

If a meal costs $30 and you want to leave a 15% tip, how much is the tip?

Back

$4.50 (calculated as $30 x 0.15).

Front

What is the formula to calculate sales tax?

Back

Sales Tax = Price of the item x Sales Tax Rate (as a decimal).

Front

If an item costs $100 and the sales tax is 8%, what is the total cost?

Back

Total Cost = Price + Sales Tax = $100 + ($100 x 0.08) = $108.

Front

What is the sales tax on a $50 item with a 6% tax rate?

Back

Sales Tax = $50 x 0.06 = $3.

Front

How do you round to the nearest cent?

Back

To round to the nearest cent, look at the third decimal place. If it is 5 or more, round up; if it is less than 5, round down.

Front

What is the total cost of a $20 item with a 10% sales tax?

Back

Total Cost = $20 + ($20 x 0.10) = $22.