Sales tax, tip, discount, markup

Front

What is sales tax?

Back

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

Front

How do you calculate the amount of sales tax on an item?

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 6.5% tax rate: $100 x 0.065 = $6.50.

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 sale price after a discount?

Back

To find the sale price, subtract the discount amount from the original price. For example, if an item costs $50 and has a 20% discount: $50 - ($50 x 0.20) = $40.

Front

What is a tip?

Back

A tip is a small amount of money given to service workers, 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). For example, for a $40 bill with a 15% tip: $40 x 0.15 = $6.

Front

What is markup?

Back

Markup is the amount added to the cost price of goods to cover overhead and profit, usually expressed as a percentage.

Front

How do you calculate the selling price with markup?

Back

To find the selling price, add the markup amount to the cost price. For example, if an item costs $20 and has a 50% markup: $20 + ($20 x 0.50) = $30.

Front

If a jacket costs $85 and is on sale for 40% off, how much do you pay?

Back

You pay $51. Calculation: $85 - ($85 x 0.40) = $51.

Front

If a store pays $1.50 for a bag of candy and marks it up by 60%, what is the selling price?

Back

The selling price is $2.40. Calculation: $1.50 + ($1.50 x 0.60) = $2.40.