Sales Tax & Discount Flashcard

Front

What is sales tax?

Back

Sales tax is a percentage of the price of a product that is added to the total cost at the time of purchase.

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) and add that amount to the original price.

Front

If a product costs $100 and the sales tax is 7.5%, what is the total cost?

Back

Total cost = $100 + ($100 * 0.075) = $107.50.

Front

What does 'discount' mean?

Back

A discount is a reduction in the price of a product or service.

Front

How do you calculate the amount of a discount?

Back

To calculate the amount of a discount, multiply the original price by the discount rate (as a decimal).

Front

If a jacket originally costs $60 and is on sale for 20% off, how much is the discount?

Back

Discount = $60 * 0.20 = $12.

Front

What is the final price after applying a discount?

Back

Final price = Original price - Discount amount.

Front

If a pair of shoes costs $80 and has a 25% discount, what is the final price?

Back

Final price = $80 - ($80 * 0.25) = $60.

Front

What is the formula to find the final price after a discount?

Back

Final price = Original price * (1 - Discount rate).

Front

What is a percentage?

Back

A percentage is a way of expressing a number as a fraction of 100.