Tax, Tip & Discount

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 (expressed as a decimal). For example, a 15% tip on a $20 bill is $20 x 0.15 = $3.

Front

What is a discount?

Back

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

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 (expressed as a decimal). For example, a 20% discount on a $50 item saves $50 x 0.20 = $10.

Front

What is sales tax?

Back

Sales tax is a percentage of the sale price added to the cost 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 sale price by the sales tax rate (expressed as a decimal). For example, a 7% sales tax on a $100 item is $100 x 0.07 = $7.

Front

What is the total cost of a meal including tip?

Back

The total cost of a meal including tip is calculated by adding the tip amount to the original meal cost.

Front

If a sweater costs $37.50 and is on sale for 20% off, how much do you pay?

Back

You pay $30.00. The discount is $37.50 x 0.20 = $7.50, so the sale price is $37.50 - $7.50 = $30.00.

Front

What is the formula for calculating the final price after tax?

Back

Final Price = Original Price + (Original Price x Sales Tax Rate).

Front

If you buy two items for $10 each and the sales tax is 5%, what is the total cost?

Back

Total cost = (2 x $10) + ((2 x $10) x 0.05) = $20 + $1 = $21.