Gratuity and Sales Tax

Front

What is gratuity?

Back

Gratuity is an extra amount of money given to someone for their service, often called a tip.

Front

What does it mean to add gratuity to a price?

Back

Adding gratuity means increasing the total cost by a certain percentage to reward the service.

Front

If a meal costs $23.77 and you add a 10% tip, what is the total cost?

Back

$26.15

Front

What is sales tax?

Back

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

Front

How do you calculate sales tax?

Back

To calculate sales tax, multiply the price by the sales tax rate (as a decimal) and add it to the original price.

Front

If a T.V. costs $990 and the sales tax is 9%, what is the total cost?

Back

$1,079.10

Front

What does it mean to subtract a discount from a price?

Back

Subtracting a discount means reducing the original price by a certain amount.

Front

If an item costs $50 and has a $10 discount, what is the final price?

Back

$40

Front

What is the difference between gratuity and sales tax?

Back

Gratuity is a voluntary tip for service, while sales tax is a mandatory fee added to purchases.

Front

What happens to the price when sales tax is added?

Back

The price increases because the sales tax is added to the original price.