Taxes,Tips & Discounts

Front

What is sales tax?

Back

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

Front

How do you calculate the total cost including sales tax?

Back

To calculate the total cost including sales tax, multiply the original price by the sales tax rate (as a decimal), then add that amount to the original price.

Front

What is a discount?

Back

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

Front

How do you find the sale price after a discount?

Back

To find the sale price, subtract the discount amount from the original price. The discount amount is calculated by multiplying the original price by the discount rate (as a decimal).

Front

If an item costs $50 and has a 20% discount, what is the sale price?

Back

The discount amount is $10 (20% of $50). The sale price is $40 ($50 - $10).

Front

What is the formula to calculate the total price after tax?

Back

Total Price = Original Price + (Original Price × Sales Tax Rate)

Front

If a backpack costs $35 and the tax is 7%, how much do you pay in total?

Back

Total cost = $35 + ($35 × 0.07) = $35 + $2.45 = $37.45.

Front

What does 'net price' mean?

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Net price is the final price after all discounts and taxes have been applied.

Front

How do you convert a percentage to a decimal?

Back

To convert a percentage to a decimal, divide the percentage by 100. For example, 15% becomes 0.15.

Front

If an item is originally priced at $75 and is on sale for 15% off, what is the discount amount?

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The discount amount is $11.25 (15% of $75).