Sales Tax and Tip

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 x Sales Tax Rate).

Front

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

Back

$1,079.10

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 = Total Bill x Tip Percentage.

Front

If your bill is $57.83 and you leave a 30% tip, what is the total amount you pay?

Back

$75.40

Front

What is the sales tax rate in the example of a $899 TV with a 6.5% tax?

Back

6.5%.

Front

How much sales tax do you pay on a $899 TV with a 6.5% tax rate?

Back

$58.44.

Front

When do you round the total up or down?

Back

You round the total up or down when calculating tips.

Front

If a raincoat costs $39.99 and has a sales tax of 7%, what is the final price?

Back

$42.79.