SALES TAX, TIP, AND DISCOUNT

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What is sales tax?

Back

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

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How do you calculate sales tax?

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To calculate sales tax, multiply the price of the item by the sales tax rate (as a decimal). For example, for a $50 item with a 7.5% tax rate: $50 x 0.075 = $3.75.

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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.

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How do you calculate a tip?

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To calculate a tip, multiply the total bill by the tip percentage (as a decimal). For example, for a $100 bill with a 15% tip: $100 x 0.15 = $15.

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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 off the original price.

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How do you calculate the amount of a discount?

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To calculate a discount, multiply the original price by the discount rate (as a decimal). For example, for a $40 item with a 20% discount: $40 x 0.20 = $8.

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What is the final price after applying a discount?

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The final price after a discount is calculated by subtracting the discount amount from the original price. For example, if an item costs $50 and has a $10 discount, the final price is $50 - $10 = $40.

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How do you round a number to the nearest cent?

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To round a number to the nearest cent, look at the third decimal place. If it's 5 or more, round up the second decimal place by one. If it's less than 5, keep the second decimal place the same.

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What is the total cost of an item including sales tax?

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The total cost including sales tax is calculated by adding the sales tax amount to the original price. For example, if an item costs $30 and the sales tax is $2.25, the total cost is $30 + $2.25 = $32.25.

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If a sweater costs $50 and is on sale for 30% off, how much do you save?

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You save $15. (Calculation: $50 x 0.30 = $15.)