Checkpoint #16: Sales Tax, Tips, and Discounts

Front

What is sales tax?

Back

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

Front

How do you calculate a discount?

Back

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

Front

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

Back

$20

Front

What is the final price after applying a discount?

Back

The final price is the original price minus the discount amount.

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 the final price including sales tax?

Back

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

Front

If a T.V. costs $990 with a 9% sales tax, what is the total cost?

Back

$1,079.10

Front

What is the formula for calculating the sale price after a discount?

Back

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