Sales Tax, Mark-ups, Discounts, Tips

Front

What is sales tax?

Back

Sales tax is an additional amount of money added to the price of goods and services, usually expressed as a percentage.

Front

How do you calculate sales tax?

Back

To calculate sales tax, multiply the price of the item by the sales tax rate (as a decimal).

Front

If an item costs $100 and the sales tax is 5%, what is the total cost?

Back

Total cost = $100 + ($100 * 0.05) = $105.

Front

What is a tip?

Back

A tip is a small amount of money given to someone 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

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

Back

Tip = $50 * 0.20 = $10.

Front

What is a mark-up?

Back

A mark-up is the amount added to the cost price of goods to cover overhead and profit.

Front

If a product costs $30 and is marked up by 25%, what is the selling price?

Back

Selling price = $30 + ($30 * 0.25) = $37.50.

Front

What is a discount?

Back

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

Front

How do you calculate a discount?

Back

To calculate a discount, multiply the original price by the discount percentage (as a decimal) and subtract it from the original price.