Tax, Tip, & Discount Review

Front

What is a tip?

Back

A tip is a small amount of money given to someone for their service, usually in restaurants, as a way to show appreciation.

Front

How do you calculate a tip?

Back

To calculate a tip, multiply the total bill by the tip percentage (e.g., for a 15% tip, multiply the bill by 0.15).

Front

If a meal costs $65, how much is a 15% tip?

Back

$9.75 (calculated as 65 x 0.15).

Front

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.

Front

How do you calculate sales tax?

Back

To calculate sales tax, multiply the price of the item by the sales tax rate (e.g., for a 6.5% tax, multiply the price by 0.065).

Front

If you buy Christmas presents for $58.50 with a 6.5% sales tax, how much do you spend in total?

Back

$62.30 (calculated as 58.50 + (58.50 x 0.065)).

Front

What is a discount?

Back

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

Front

How do you calculate the amount saved with a discount?

Back

To calculate the amount saved, multiply the original price by the discount percentage (e.g., for a 10% discount, multiply the price by 0.10).

Front

If an item costs $17 and has a 10% discount, how much do you save?

Back

$1.70 (calculated as 17 x 0.10).

Front

If you buy two stockings for $17 with a 10% discount, what is the total cost after the discount?

Back

$15.30 (calculated as 17 - 1.70).