Tax, Tip, Markup, Interest

Front

What is interest?

Back

Interest is the cost of borrowing money or the return on investment earned on savings, usually expressed as a percentage of the principal amount.

Front

How do you calculate simple interest?

Back

Simple interest can be calculated using the formula: Interest = Principal x Rate x Time.

Front

What is the formula to find the total amount in an account after earning interest?

Back

Total Amount = Principal + Interest.

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 final price including sales tax?

Back

Final Price = Original Price + (Original Price x Sales Tax Rate).

Front

What is a tip?

Back

A tip is a small amount of money given to service workers as a token of appreciation for their service, usually expressed as a percentage of the total bill.

Front

How do you calculate a tip?

Back

Tip = Total Bill x Tip Percentage.

Front

What is markup?

Back

Markup is the amount added to the cost price of goods to cover overhead and profit, usually expressed as a percentage.

Front

How do you calculate the retail price after markup?

Back

Retail Price = Cost Price + (Cost Price x Markup Percentage).

Front

What is the difference between gross and net amount?

Back

Gross amount is the total before deductions (like taxes or tips), while net amount is what remains after deductions.