Sales Tax/Discount and Tip

Front

What is sales tax?

Back

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

Front

How do you calculate the sales price after a discount?

Back

To calculate the sales price after a discount, subtract the discount amount from the original price. Discount amount = Original Price x Discount Rate.

Front

What is a discount?

Back

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

Front

How do you calculate a tip?

Back

To calculate a tip, multiply the total cost of the service by the tip percentage. Tip = Total Cost x Tip Percentage.

Front

What is the formula for calculating the final price including sales tax?

Back

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

Front

If a product costs $50 and has a 20% discount, what is the discount amount?

Back

Discount Amount = $50 x 0.20 = $10.

Front

If a meal costs $40 and you want to leave a 15% tip, how much is the tip?

Back

Tip = $40 x 0.15 = $6.

Front

What is the final price of an item that costs $80 with a 10% discount and a 5% sales tax?

Back

Final Price = ($80 - ($80 x 0.10)) + (($80 - ($80 x 0.10)) x 0.05) = $74.80.

Front

How much would you save on a $200 item with a 25% discount?

Back

Savings = $200 x 0.25 = $50.

Front

What does 'rounding to the nearest hundredth' mean?

Back

Rounding to the nearest hundredth means adjusting a number to two decimal places, for example, $3.836 becomes $3.84.