Tax & Tip Practice

Front

What is sales tax?

Back

Sales tax is a percentage of the purchase price added to the cost of goods and services, collected by the seller and paid to the government.

Front

How do you calculate the total cost including sales tax?

Back

To calculate the total cost including sales tax, multiply the price of the item by the sales tax rate (as a decimal), then add that amount to the original price.

Front

If a pair of shoes costs $50.25 and the sales tax is 7.5%, what is the total cost?

Back

$54.02

Front

What is a tip?

Back

A tip is a small amount of money given to someone for their service, typically calculated as a percentage of the total bill.

Front

How do you calculate a tip?

Back

To calculate a tip, multiply the total bill amount by the tip percentage (as a decimal).

Front

If Daniel's meal costs $28.00 and he wants to leave a 20% tip, what is the total bill?

Back

$33.60

Front

What is the formula to calculate the total cost of an item with sales tax?

Back

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