Taxes and Discounts

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What is a sales tax?

Back

A sales tax is a percentage of the sale price of goods and services that is added to the total cost, collected by the seller and paid to the government.

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How do you calculate the total cost including sales tax?

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To calculate the total cost including sales tax, multiply the original price by the sales tax rate (as a decimal), then add that amount to the original price.

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What is a discount?

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A discount is a reduction in the price of a product or service, often expressed as a percentage of the original price.

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How do you calculate the price after a discount?

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To calculate the price after a discount, multiply the original price by the discount rate (as a decimal), subtract that amount from the original price.

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What is a tip?

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

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How do you calculate the total cost including a tip?

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To calculate the total cost including a tip, multiply the service amount by the tip percentage (as a decimal), then add that amount to the service amount.

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If an item costs $100 and has a 20% discount, what is the sale price?

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The sale price is $80. (Calculation: $100 - ($100 * 0.20) = $80)

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What is the formula to calculate sales tax?

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Sales Tax = Original Price x Sales Tax Rate.

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If a service costs $72.60 and the sales tax is 8%, how much is the sales tax?

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The sales tax is $5.81. (Calculation: $72.60 x 0.08 = $5.81)

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What is the total cost of an item priced at $59.99 with a 6% sales tax?

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The total cost is $63.59. (Calculation: $59.99 + ($59.99 x 0.06) = $63.59)