Sales Tax, Discount, Commission, Gratuity & Simple Interest

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What is Sales Tax?

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A sales tax is a percentage of the sale price that is added to the cost of goods and services, collected by the seller and paid to the government.

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How do you calculate the total cost including sales tax?

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Total Cost = Price + (Price x Sales Tax Rate)

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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, often expressed as a percentage.

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How do you calculate the sale price after a discount?

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Sale Price = Original Price - (Original Price x Discount Rate)

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What is Commission?

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Commission is a fee paid to an employee or agent for services rendered, usually calculated as a percentage of sales.

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How do you calculate commission earned?

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Commission Earned = Total Sales x Commission Rate

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What is Gratuity?

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Gratuity, or tip, is a sum of money given to service workers for their service, often expressed as a percentage of the total bill.

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How do you calculate the total bill including gratuity?

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Total Bill = Meal Cost + (Meal Cost x Gratuity Rate)

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What is Simple Interest?

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Simple interest is the interest calculated on the principal amount only, not on the interest accrued.

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How do you calculate Simple Interest?

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Simple Interest = Principal x Rate x Time (in years)