Sales Tax, Tip, and Commission

Front

What is sales tax?

Back

Sales tax is a percentage of the purchase price added to the cost of goods and services, collected by the seller and paid to the government.

Front

How do you calculate sales tax?

Back

To calculate sales tax, multiply the purchase price by the sales tax rate (as a decimal).

Front

If a computer costs $890 and the sales tax rate is 6%, what is the total cost?

Back

Total cost = $890 + ($890 * 0.06) = $943.40.

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

How do you calculate a tip?

Back

To calculate a tip, multiply the total bill by the tip percentage (as a decimal).

Front

If you spend $18 on breakfast and the tax is 7%, what is your total?

Back

Total = $18 + ($18 * 0.07) = $19.26.

Front

What is commission?

Back

Commission is a fee paid to an employee or agent for their services, usually calculated as a percentage of the sales they make.

Front

If Noah sells $1,700 worth of furniture and earns a 5% commission, how much does he earn?

Back

Commission = $1,700 * 0.05 = $85.

Front

What is the formula for calculating total cost including sales tax?

Back

Total Cost = Purchase Price + (Purchase Price * Sales Tax Rate).

Front

If you spend $24.50 on lunch and want to leave a 20% tip, how much is the tip?

Back

Tip = $24.50 * 0.20 = $4.90.