Tax, Tip, Discount, Commission

Front

What is commission?

Back

Commission is a fee paid to an employee or agent for services rendered, typically calculated as a percentage of the sales made.

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How do you calculate commission?

Back

To calculate commission, multiply the total sales amount by the commission rate (as a decimal). For example, if the commission rate is 10% and sales are $1,000, the commission is $1,000 x 0.10 = $100.

Front

What is sales tax?

Back

Sales tax is a tax imposed by the government on the sale of goods and services, usually calculated as a percentage of the purchase price.

Front

How do you calculate sales tax?

Back

To calculate sales tax, multiply the purchase price by the sales tax rate (as a decimal). For example, if a T.V. costs $990 and the sales tax is 9%, the sales tax is $990 x 0.09 = $89.10.

Front

What is a tip?

Back

A tip is a small amount of money given to someone for their services, often calculated as a percentage of the total bill.

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How do you calculate a tip?

Back

To calculate a tip, multiply the total bill by the desired tip percentage (as a decimal). For example, for a $27.31 bill with a 23% tip, the tip is $27.31 x 0.23 = $6.28.

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.

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How do you calculate a discount?

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To calculate a discount, multiply the original price by the discount rate (as a decimal) and subtract that amount from the original price. For example, a 20% discount on a $50 item is $50 x 0.20 = $10, so the final price is $50 - $10 = $40.

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What is the final price after tax?

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The final price after tax is the original price plus the sales tax. For example, if a T.V. costs $990 and the sales tax is $89.10, the final price is $990 + $89.10 = $1,079.10.

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What does it mean to add sales tax to a price?

Back

Adding sales tax to a price means increasing the original price by the amount of tax calculated based on the sales tax rate.