Markup and Markdown

Sales tax is a percentage of the sale price that is added to the cost of a product or service, collected by the seller and paid to the government.

To calculate the total cost including sales tax, multiply the original price by the sales tax rate (as a decimal), then add that amount to the original price.

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

To calculate the sale price after a discount, multiply the original price by the discount rate (as a decimal), subtract that amount from the original price.

Sales Tax = Original Price x Sales Tax Rate.

Discount Amount = Original Price x Discount Rate.

Discount Amount = $64 x 0.20 = $12.80.

Sale Price = $45.50 - ($45.50 x 0.30) = $31.85.

Total Cost = $220 + ($220 x 0.0625) = $233.75.

Total Price = $99 + ($99 x 0.05) = $103.95.