Sales Tax, Tips & Discounts

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 final price including sales tax?

Back

Final Price = Original Price + (Original Price × Sales Tax Rate)

Front

If a T.V costs $990 and has a sales tax of 9%, what is the final price?

Back

$1,079.10

Front

What is a discount?

Back

A discount is a reduction in the price of a product or service.

Front

How do you calculate the amount of discount?

Back

Discount Amount = Original Price × Discount Rate

Front

If a DVD costs $15 and is marked 10% off, what is the discount amount?

Back

$1.50

Front

What is a tip?

Back

A tip is a small amount of money given to someone for their service, usually calculated as a percentage of the total bill.

Front

How do you calculate a tip?

Back

Tip Amount = Total Bill × Tip Rate

Front

If a dinner bill is $26 and the tip is 15%, how much is the tip?

Back

$3.90

Front

What does it mean to subtract a discount from the price?

Back

Subtracting a discount means reducing the original price by the discount amount to find the sale price.