Tax, Tip, Discount

Front

What is tax?

Back

Tax is a percentage of the cost that is added to the total price of an item.

Front

What is a discount?

Back

A discount is a percentage of the cost that is subtracted from the total price of an item.

Front

How do you calculate sales tax?

Back

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

Front

How do you calculate a discount?

Back

To calculate a discount, multiply the cost of the item by the discount rate (as a decimal) and then subtract that amount from the original cost.

Front

If an item costs $50 and has a sales tax of 8%, what is the total cost?

Back

Total cost = $50 + ($50 * 0.08) = $54.

Front

If an item costs $200 and has a discount of 20%, what is the new cost?

Back

New cost = $200 - ($200 * 0.20) = $160.

Front

What does it mean to add tax to a price?

Back

Adding tax means increasing the total price of an item by a certain percentage.

Front

What does it mean to subtract a discount from a price?

Back

Subtracting a discount means reducing the total price of an item by a certain percentage.

Front

What is the formula for calculating total cost with tax?

Back

Total Cost = Original Price + (Original Price * Tax Rate)