Percent Word Problems: Tax, Tip, Discount

A percent is a ratio expressed as a fraction of 100. It represents a part of a whole.

To calculate the total cost including tax, multiply the original price by the tax rate (as a decimal) and add it to the original price.

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

To calculate the amount of a discount, multiply the original price by the discount rate (as a decimal).

Sale Price = Original Price - Discount Amount.

Final Cost = Discounted Price + (Discounted Price x Tax Rate).

Discount Amount = $50 x 0.20 = $10.

Sale Price = $80 - ($80 x 0.25) = $60.

Tax Amount = $200 x 0.05 = $10.

Percentage Saved = (Discount Amount / Original Price) x 100.