Sales tax and discount

Front

What is sales tax?

Back

Sales tax is a percentage of the price of a product that is added to the total cost at the time of purchase. It is collected by the seller and paid to the government.

Front

How do you calculate sales tax?

Back

To calculate sales tax, multiply the price of the item by the sales tax rate (as a decimal). For example, for a $100 item with a 5% tax rate: $100 x 0.05 = $5.

Front

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

Back

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

Front

If an item costs $50 and the sales tax is 8%, what is the total cost?

Back

Total Cost = $50 + ($50 x 0.08) = $54.

Front

What is a discount?

Back

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

Front

How do you calculate the amount of a discount?

Back

To calculate the discount amount, multiply the original price by the discount rate (as a decimal). For example, for a $100 item with a 20% discount: $100 x 0.20 = $20.

Front

What is the formula to find the total cost after a discount?

Back

Total Cost After Discount = Original Price - Discount Amount.

Front

If a shirt costs $30 and has a 10% discount, what is the final price?

Back

Final Price = $30 - ($30 x 0.10) = $27.

Front

What is the difference between sales tax and discount?

Back

Sales tax is an additional charge on the price of an item, while a discount reduces the price of the item.

Front

If you buy a $200 item with a 5% sales tax, what is the total cost?

Back

Total Cost = $200 + ($200 x 0.05) = $210.