Taxes, Tips, & Discounts Review

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

To calculate a tip, multiply the total bill 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 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 sales tax?

Back

To calculate sales tax, multiply the original price by the sales tax rate (as a decimal). For example, for a 6% tax on a $100 item: $100 x 0.06 = $6.

Front

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

Back

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

Front

If a bill is $25 and the tip is 15%, how much is the tip?

Back

Tip = $25 x 0.15 = $3.75.

Front

If a jacket costs $80 and the sales tax is 5%, what is the total cost?

Back

Total Cost = $80 + ($80 x 0.05) = $80 + $4 = $84.

Front

What is a discount?

Back

A discount is a reduction in the price of a product or service, often expressed as a percentage.

Front

How do you calculate the final price after a discount?

Back

Final Price = Original Price - (Original Price x Discount Rate).

Front

If a camera costs $300 and has a 10% discount, what is the discount amount?

Back

Discount = $300 x 0.10 = $30.