Percent Study Guide

Front

What is sales tax?

Back

Sales tax is a percentage of the purchase price that is 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 cost of the item by the sales tax rate (as a decimal). For example, for an item costing $100 with a sales tax of 8%, the tax is $100 x 0.08 = $8.

Front

What is the formula to calculate the total cost including tax?

Back

Total Cost = Original Price + (Original Price x Sales Tax Rate).

Front

How do you calculate a tip based on a meal cost?

Back

To calculate a tip, multiply the total cost of the meal (including tax) by the tip percentage (as a decimal). For example, for a meal costing $100 with a 20% tip, the tip is $100 x 0.20 = $20.

Front

What is a percent discount?

Back

A percent discount is a reduction from the original price expressed as a percentage. For example, a 20% discount on a $50 item means the item costs $50 - ($50 x 0.20) = $40.

Front

How do you calculate the sale price after a discount?

Back

Sale Price = Original Price - (Original Price x Discount Rate).

Front

What does it mean to mark up a price?

Back

Marking up a price means increasing the original price of an item by a certain percentage to determine the selling price.

Front

How do you calculate the final price after a markup and tax?

Back

Final Price = (Original Price + (Original Price x Markup Rate)) + ((Original Price + (Original Price x Markup Rate)) x Sales Tax Rate).

Front

What is the difference between gross and net price?

Back

Gross price is the total amount before any deductions (like discounts or taxes), while net price is the amount after all deductions.

Front

How do you find the percentage of a number?

Back

To find the percentage of a number, multiply the number by the percentage (as a decimal). For example, to find 20% of 50, calculate 50 x 0.20 = 10.