Taxes, Tips, & Discounts Review

Front

What is sales tax?

Back

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 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 6% tax, the tax is $100 x 0.06 = $6.

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 15% tip, the tip is $50 x 0.15 = $7.50.

Front

What is the total cost of an item including tax?

Back

The total cost including tax is the original price plus the sales tax. For example, if an item costs $20 and the tax is $1.20, the total cost is $20 + $1.20 = $21.20.

Front

If a restaurant bill is $40 and the sales tax is 8%, what is the total bill?

Back

Total bill = $40 + ($40 x 0.08) = $40 + $3.20 = $43.20.

Front

What is the formula to find the total cost after tax and tip?

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

Front

How do you find the amount of tax on a purchase?

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To find the amount of tax, multiply the price of the item by the sales tax rate. For example, for a $50 item with a 5% tax, the tax is $50 x 0.05 = $2.50.

Front

What is a discount?

Back

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

Front

How do you calculate the final price after a discount?

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Final Price = Original Price - (Original Price x Discount Rate). For example, for a $100 item with a 20% discount, the final price is $100 - ($100 x 0.20) = $80.