Mark up and Mark Down

Front

What is a markdown?

Back

A markdown is a reduction in the original price of an item, often expressed as a percentage.

Front

How do you calculate a markdown amount?

Back

To calculate a markdown amount, subtract the markdown percentage from 100, convert it to a decimal, and multiply it by the original price.

Front

What is a markup?

Back

A markup is an increase in the original price of an item, often expressed as a percentage.

Front

How do you calculate a markup amount?

Back

To calculate a markup amount, add the markup percentage to 100, convert it to a decimal, and multiply it by the original price.

Front

What is the formula for calculating simple interest?

Back

Simple Interest = Principal x Rate x Time.

Front

If an item costs $100 and is marked down by 20%, what is the sale price?

Back

Sale Price = Original Price x (1 - Markdown Percentage) = $100 x (1 - 0.20) = $80.

Front

If a laptop costs $420 and is marked up by 57%, what is the sale price?

Back

Sale Price = Original Price x (1 + Markup Percentage) = $420 x (1 + 0.57) = $659.40.

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

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

Front

If the sales tax rate is 4% and an item costs $117.93, what is the total cost including tax?

Back

Total Cost = $117.93 + ($117.93 x 0.04) = $122.65.