Tax, Tip, and Discount Practice

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 price after a discount?

Back

To calculate the price after a discount, subtract the discount amount from the original price. Discount Amount = Original Price x Discount Rate.

Front

What is sales tax?

Back

Sales tax is a percentage added to the price of goods and 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 original price by the sales tax rate and add that amount to the original price. Total Cost = Original Price + (Original Price x Sales Tax Rate).

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. Tip Amount = Total Bill x Tip Percentage.

Front

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

Back

Final Price = $100 - ($100 x 0.20) = $80.

Front

If a pair of shoes costs $50 and has a sales tax of 8%, what is the total cost?

Back

Total Cost = $50 + ($50 x 0.08) = $54.

Front

What is the formula to find the amount saved during a sale?

Back

Amount Saved = Original Price x Discount Rate.

Front

If you buy two items for $20 each with a 10% discount, how much do you save?

Back

Amount Saved = (2 x $20) x 0.10 = $4.