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, collected by the seller and paid to the government.

Front

How do you calculate the total cost including sales tax?

Back

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.

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 sale price after a discount?

Back

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

Front

What is a tip?

Back

A tip is a small amount of money given to someone for their service, usually expressed as a percentage of the total bill.

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 (as a decimal), then add that amount to the original service cost.

Front

If a computer costs $675 and the sales tax is 7%, what is the total cost?

Back

Total cost = $675 + ($675 * 0.07) = $722.25.

Front

If a regular price is $174 and there is a 40% discount, what is the sale price?

Back

Sale price = $174 - ($174 * 0.40) = $104.40.

Front

If a haircut costs $15 and you give a 20% tip, what is the total cost?

Back

Total cost = $15 + ($15 * 0.20) = $18.00.

Front

If a baseball bat costs $28 and there is a 25% discount, how much will you pay?

Back

Amount paid = $28 - ($28 * 0.25) = $21.00.