Taxes, Tips, & Discounts Review

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What is a tip?

Back

A tip is a small amount of money given to someone for their service, usually a percentage of the total bill.

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How do you calculate a tip?

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To calculate a tip, multiply the total bill by the tip percentage (as a decimal). For example, a 20% tip on a $50 bill is $50 x 0.20 = $10.

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What is sales tax?

Back

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

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How do you calculate sales tax?

Back

To calculate sales tax, multiply the original price by the sales tax rate (as a decimal). For example, a 6% sales tax on a $100 item is $100 x 0.06 = $6.

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What is a discount?

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

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How do you calculate the final price after a discount?

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To find the final price after a discount, subtract the discount amount from the original price. For example, a $50 item with a 20% discount: $50 - ($50 x 0.20) = $40.

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What is the formula to find the original price before tax?

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To find the original price before tax, divide the total amount paid by (1 + sales tax rate). For example, if you paid $47 with a 6% tax: $47 / 1.06 = $44.64.

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If a jacket costs $62 and the sales tax is 7%, how much tax do you pay?

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To find the sales tax, multiply the price by the tax rate: $62 x 0.07 = $4.34.

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What is the grand total?

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The grand total is the total amount you pay after adding sales tax and any tips to the original price.

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How do you calculate the grand total with tax and tip?

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To calculate the grand total, first find the total with tax, then add the tip. For example, if the bill is $12.36, tax is 4.5%, and tip is 18%: Total with tax = $12.36 + ($12.36 x 0.045) = $12.91; Grand total = $12.91 + ($12.36 x 0.18) = $15.24.