Tax & Tip

Front

What is sales tax?

Back

Sales tax is a percentage of the purchase price added to the total cost of goods or services, collected by the seller and paid to the government.

Front

How do you calculate the total cost including sales tax?

Back

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

Front

If an item costs $20 and the sales tax is 5%, what is the total cost?

Back

Total cost = $20 + ($20 * 0.05) = $21.

Front

What is a tip?

Back

A tip is a small amount of money given to someone for their service, typically 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).

Front

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

Back

Tip = $30 * 0.15 = $4.50.

Front

What is the total cost if a meal costs $30 and you leave a 15% tip?

Back

Total cost = $30 + $4.50 = $34.50.

Front

What is the formula to find the final price after tax?

Back

Final Price = Original Price + (Original Price * Sales Tax Rate).

Front

If a TV costs $500 and the sales tax is 8%, what is the final price?

Back

Final Price = $500 + ($500 * 0.08) = $540.

Front

What is the difference between sales tax and tip?

Back

Sales tax is a government-mandated charge on purchases, while a tip is a voluntary payment for service.