Markup, Discount, Tip, and Tax

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 the price after a discount?

Back

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

Front

What is a tip?

Back

A tip is a small amount of money given to service workers, typically calculated as a percentage of the total bill.

Front

How do you calculate a tip?

Back

To calculate a tip, multiply the total cost of the meal by the tip percentage. Tip Amount = Total Cost x Tip Rate.

Front

What is markup?

Back

Markup is the amount added to the cost price of goods to cover overhead and profit, usually expressed as a percentage.

Front

How do you calculate the selling price with markup?

Back

To calculate the selling price with markup, add the markup amount to the cost price. Selling Price = Cost Price + (Cost Price x Markup Rate).

Front

What is tax?

Back

Tax is a financial charge imposed by a government on income, goods, or services, usually expressed as a percentage.

Front

How do you calculate the total price including tax?

Back

To calculate the total price including tax, multiply the original price by the tax rate and add it to the original price. Total Price = Original Price + (Original Price x Tax Rate).

Front

If a telescope costs $99.99 and has a 13% discount, what is the final price?

Back

The final price is $86.99.

Front

If a meal costs $12 and you leave a 20% tip, what is the total cost of the meal?

Back

The total cost of the meal is $14.40.