Tax, Tip, and Discount Practice

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.

Front

How do you calculate sales tax?

Back

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

Front

If an item costs $20 and the sales tax is 5%, what is the total cost?

Back

Total cost = $20 + ($20 * 0.05) = $21.

Front

What is a discount?

Back

A discount is a reduction in the price of an item.

Front

How do you calculate a discount?

Back

To calculate a discount, multiply the original price by the discount rate (as a decimal) and subtract that amount from the original price.

Front

If a shirt costs $50 and is on sale for 20% off, what is the sale price?

Back

Sale price = $50 - ($50 * 0.20) = $40.

Front

What is a tip?

Back

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

Front

How do you calculate a tip?

Back

To calculate a tip, multiply the total bill by the tip percentage (as a decimal).

Front

If a restaurant bill is $30 and you want to leave a 15% tip, how much is the tip?

Back

Tip = $30 * 0.15 = $4.50.

Front

What does it mean to subtract a discount from a price?

Back

Subtracting a discount means reducing the original price by the amount of the discount.