Sales Tax and Tipping

Front

What is sales tax?

Back

Sales tax is a percentage of the sale price of goods and services that is collected by the seller and paid to the government.

Front

How do you calculate the total cost including sales tax?

Back

Total Cost = Price + (Price × Sales Tax Rate). For example, if a car costs $29,990 and the sales tax rate is 6.75%, the total cost is $29,990 + ($29,990 × 0.0675) = $32,014.33.

Front

What is a tip?

Back

A tip is a small amount of money given to someone for their services, typically in the hospitality industry, as a token of appreciation.

Front

How do you calculate a tip based on a percentage?

Back

Tip Amount = Bill Amount × Tip Percentage. For example, if the bill is $68.90 and the tip percentage is 15%, the tip is $68.90 × 0.15 = $10.34.

Front

What is the formula to find the total amount spent including a tip?

Back

Total Amount = Bill Amount + Tip Amount. For example, if the bill is $25 and the tip is $5, the total amount spent is $25 + $5 = $30.

Front

If a bill is $11 and the tip is 20%, how much is the tip?

Back

Tip = $11 × 0.20 = $2.20.

Front

What is the sales tax rate in decimal form for 6.75%?

Back

The sales tax rate in decimal form is 0.0675.

Front

If you spend $58.50 and the sales tax rate is 0.065, how much will you spend in total?

Back

Total = $58.50 + ($58.50 × 0.065) = $62.30.

Front

What is the total cost of an item priced at $299.90 with a sales tax of 7%?

Back

Total Cost = $299.90 + ($299.90 × 0.07) = $319.89.

Front

How do you convert a percentage to a decimal?

Back

To convert a percentage to a decimal, divide by 100. For example, 15% becomes 0.15.