Tax, Tip, and Discount Review

Front

What is sales tax?

Back

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

Front

How do you calculate the total cost including tax?

Back

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.

Front

What is a tip?

Back

A tip is a small amount of money given to service workers (like waiters) as a thank you for their service, usually calculated as a percentage of the total bill.

Front

How do you calculate a tip?

Back

To calculate a tip, multiply the total bill by the tip percentage (as a decimal).

Front

What is a discount?

Back

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

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 percentage (as a decimal), subtract that amount from the original price.

Front

If an item costs $100 and has a 10% sales tax, what is the total cost?

Back

Total cost = $100 + ($100 * 0.10) = $110.

Front

If a meal costs $50 and you want to leave a 20% tip, how much is the tip?

Back

Tip = $50 * 0.20 = $10.

Front

What is the formula for calculating the final price after applying a discount?

Back

Final Price = Original Price - (Original Price * Discount Rate).

Front

If a bicycle costs $340 and the sales tax is 7%, how much tax do you pay?

Back

Sales Tax = $340 * 0.07 = $23.80.