Tax, Tip, Mark up Practice

Front

What is sales tax?

Back

Sales tax is a percentage of the sale price of goods and services that is collected by the seller and paid to the government.

Front

How do you calculate the total cost with sales tax?

Back

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

Front

If an item costs $24.95 and the sales tax is 7%, what is the total cost?

Back

Total Cost = $24.95 + ($24.95 x 0.07) = $26.70.

Front

What is the formula to find the final price of an item including tax?

Back

Final Price = Original Price + (Original Price x Tax Rate).

Front

How much tax would you pay on a $899 item with a 6.5% tax rate?

Back

Tax = $899 x 0.065 = $58.43.

Front

What does 'markup' mean in pricing?

Back

Markup is the amount added to the cost price of goods to cover overhead and profit.

Front

If a store pays $1.50 for a bag of candy and marks it up by 60%, what is the selling price?

Back

Selling Price = Cost + (Cost x Markup Rate) = $1.50 + ($1.50 x 0.60) = $2.40.

Front

What is 6% expressed as a decimal?

Back

6% as a decimal is 0.06.

Front

How do you convert a percentage to a decimal?

Back

To convert a percentage to a decimal, divide by 100.

Front

What is the total cost of a $990 TV with a 9% sales tax?

Back

Total Cost = $990 + ($990 x 0.09) = $1,079.10.