Markup, Tax, Tip, Discount Flashcard

Front

What is a discount?

Back

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

Front

How do you calculate the final price after a discount?

Back

To calculate the final price after a discount, subtract the discount amount from the original price. Discount Amount = Original Price x Discount Rate.

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 total cost including sales tax?

Back

To calculate the total cost including sales tax, multiply the original price by the sales tax rate and add that amount to the original price. Total Cost = Original Price + (Original Price x Sales Tax Rate).

Front

What is a tip?

Back

A tip is a small amount of money given to someone for their service, usually expressed 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. Tip Amount = Total Bill x Tip Rate.

Front

What is the formula for calculating the final price after applying a discount and sales tax?

Back

Final Price = (Original Price - Discount Amount) + Sales Tax Amount.

Front

If a jacket costs $85 and is on sale for 40% off, how much do you pay?

Back

You pay $51. Calculation: Discount = $85 x 0.40 = $34; Final Price = $85 - $34 = $51.

Front

If a TV costs $800 and is on sale for 33% off, what is the sale price before tax?

Back

The sale price before tax is $536. Calculation: Discount = $800 x 0.33 = $264; Sale Price = $800 - $264 = $536.

Front

What is the total cost of a $20 lunch with a 20% tip?

Back

The total cost is $24. Calculation: Tip = $20 x 0.20 = $4; Total Cost = $20 + $4 = $24.