Tax Tip Discount Practice

Front

What is sales tax?

Back

Sales tax is a percentage of the purchase price that is added to the total cost of an item.

Front

How do you calculate the total cost including sales tax?

Back

To calculate the total cost including sales tax, multiply the cost of the item by the sales tax rate and then add that amount to the original cost.

Front

If an item costs $100 and the sales tax is 7%, what is the total cost?

Back

Total cost = $100 + ($100 * 0.07) = $107.

Front

What is a discount?

Back

A discount is a reduction in the original price of an item, usually expressed as a percentage.

Front

How do you calculate the new cost after applying a discount?

Back

To calculate the new cost after a discount, multiply the original price by the discount rate and subtract that amount from the original price.

Front

If an item costs $200 and has a 15% discount, what is the new cost?

Back

New cost = $200 - ($200 * 0.15) = $170.

Front

What does it mean to tip?

Back

To tip means to give extra money to someone for their service, usually expressed as a percentage of the total cost.

Front

How do you calculate the total cost including a tip?

Back

To calculate the total cost including a tip, multiply the service cost by the tip percentage and add that amount to the original service cost.

Front

If a haircut costs $20 and you give a 20% tip, what is the total cost?

Back

Total cost = $20 + ($20 * 0.20) = $24.

Front

What is the formula for calculating a percentage of a number?

Back

Percentage of a number = (Percentage rate / 100) * Number.