Tax, Tip, Discount, and Commission

Front

What is sales tax?

Back

A sales tax is a percentage of the purchase price added to the cost of goods and services, collected by the seller and paid to the government.

Front

How do you calculate the final price including sales tax?

Back

Final Price = Original Price + (Original Price × Sales Tax Rate)

Front

What is a commission?

Back

A commission is a fee paid to an employee or agent for services rendered, typically calculated as a percentage of sales.

Front

How do you calculate commission earned?

Back

Commission Earned = Total Sales × Commission Rate

Front

What is a tip?

Back

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

Front

How do you calculate the total bill including a tip?

Back

Total Bill = Original Bill + (Original Bill × Tip Percentage)

Front

What is a discount?

Back

A discount is a reduction in the price of a product or service, often expressed as a percentage.

Front

How do you calculate the final price after a discount?

Back

Final Price = Original Price - (Original Price × Discount Rate)

Front

If a T.V costs $990 with a 9% sales tax, what is the final price?

Back

Final Price = $990 + ($990 × 0.09) = $1,079.10

Front

If Felipe earns 5% commission on $9,650 in sales, how much is his commission?

Back

Commission = $9,650 × 0.05 = $482.50