Tax and Tip

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

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 a tip?

Back

To calculate a tip, multiply the total bill by the tip percentage (as a decimal). For example, for a $50 bill with a 20% tip: $50 x 0.20 = $10.

Front

What does 'added to' mean in the context of tax?

Back

'Added to' means that the tax amount is included in the final price of the item, increasing the total cost.

Front

If a meal costs $30 and the tax is 10%, what is the total cost?

Back

Total cost = $30 + ($30 x 0.10) = $30 + $3 = $33.

Front

What is the formula to find the final price after a discount?

Back

Final Price = Original Price - (Original Price x Discount Percentage).

Front

If a shirt costs $40 and is on sale for 25% off, what is the sale price?

Back

Sale Price = $40 - ($40 x 0.25) = $40 - $10 = $30.

Front

What is the difference between gross and net price?

Back

Gross price is the total amount before any deductions (like tax or discounts), while net price is the amount after deductions.

Front

How do you find the percentage of a number?

Back

To find the percentage of a number, multiply the number by the percentage (as a decimal). For example, 20% of 50 is 50 x 0.20 = 10.

Front

What is a common tip percentage in restaurants?

Back

A common tip percentage in restaurants is 15% to 20% of the total bill.