Tax and Tip

Front

What is sales tax?

Back

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 sales tax?

Back

To calculate sales tax, multiply the purchase price by the sales tax rate (as a decimal). For example, for a $10 item with a 6% tax rate: $10 x 0.06 = $0.60.

Front

What is the formula to find the total cost including sales tax?

Back

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

Front

If an item costs $50 and the sales tax is 8%, what is the total cost?

Back

Total Cost = $50 + ($50 x 0.08) = $54.

Front

What does it mean to round to the nearest cent?

Back

Rounding to the nearest cent means adjusting a monetary amount to the closest hundredth place (two decimal places).

Front

Round $12.29 to the nearest cent.

Back

$12.29 remains $12.29.

Front

Round $1.23 to the nearest cent.

Back

$1.23 remains $1.23.

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

If a shirt originally costs $30 and is on sale for 15% off, what is the discount amount?

Back

Discount = $30 x 0.15 = $4.50.

Front

How do you calculate the final price after a discount?

Back

Final Price = Original Price - Discount Amount.