Lesson 20 Review!

Front

What is a gratuity?

Back

A gratuity is a small amount of money given in return for a service, often referred to as a tip.

Front

What is the selling price?

Back

The selling price is the amount a customer pays for an item.

Front

How do you calculate a 20% tip on a total bill of $25.50?

Back

To calculate a 20% tip, multiply the total bill by 0.20. For $25.50, the tip is $5.10.

Front

If an item costs $40 and is on sale for 20% off, how much will it cost after the discount?

Back

The discount is $8 (20% of $40), so the final price is $32.

Front

What is the formula to calculate simple interest?

Back

Simple Interest = Principal x Rate x Time.

Front

If Danny earned $100 in interest on $800 over 5 years, what was the interest rate?

Back

The interest rate is 2.5%.

Front

What is a discount?

Back

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

Front

What is sales tax?

Back

Sales tax is a percentage added to the selling price of goods and services.

Front

What does 'markup' mean in pricing?

Back

Markup is the amount added to the cost price of goods to cover overhead and profit.

Front

What is a markdown?

Back

A markdown is a reduction in the original selling price of an item.