Tax/Tip/Discount/Commission

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What is tax?

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A tax is a mandatory financial charge or levy imposed by a government on individuals or businesses to fund public services and infrastructure.

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How do you calculate the total cost including tax?

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To calculate the total cost including tax, multiply the original price by the tax rate (as a decimal), then add that amount to the original price. Formula: Total Cost = Original Price + (Original Price x Tax Rate).

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What is a tip?

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

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How do you calculate a tip?

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To calculate a tip, multiply the total bill amount by the tip percentage (as a decimal). Formula: Tip Amount = Total Bill x Tip Percentage.

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What is a discount?

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

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How do you calculate the sale price after a discount?

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To calculate the sale price after a discount, subtract the discount amount from the original price. Formula: Sale Price = Original Price - Discount Amount.

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What is commission?

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Commission is a fee paid to an employee or agent for their services, usually calculated as a percentage of the sales they generate.

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How do you calculate commission?

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To calculate commission, multiply the total sales amount by the commission rate (as a decimal). Formula: Commission = Total Sales x Commission Rate.

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If an item costs $100 and has a 20% discount, what is the sale price?

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The sale price is $80. (Calculation: $100 - ($100 x 0.20) = $80).

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If a meal costs $30 and you want to leave a 15% tip, how much is the tip?

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The tip is $4.50. (Calculation: $30 x 0.15 = $4.50).