Sales Tax and Tip Questions

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.

Front

How do you calculate a tip?

Back

To calculate a tip, multiply the total bill amount by the tip percentage (as a decimal). For example, for a 20% tip on a $50 bill: $50 x 0.20 = $10.

Front

What is the formula to find the total cost including tip?

Back

Total Cost = Original Bill + Tip Amount.

Front

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

Back

Tip = $30 x 0.15 = $4.50.

Front

What is the total cost of a $30 meal with a 15% tip?

Back

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

Front

How do you find the sales tax amount?

Back

Sales Tax Amount = Price of Item x Sales Tax Rate (as a decimal).

Front

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

Back

Sales Tax = $500 x 0.08 = $40.

Front

What is the total cost of a $500 TV with 8% sales tax?

Back

Total Cost = $500 + $40 = $540.

Front

How do you calculate the total cost of a service including tip?

Back

Total Cost = Service Cost + (Service Cost x Tip Percentage).

Front

If you leave a 20% tip on a $25 haircut, what is the total cost?

Back

Tip = $25 x 0.20 = $5; Total Cost = $25 + $5 = $30.