Tax & Tip

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, for a $50 bill with a 20% tip: $50 x 0.20 = $10.

Front

What is sales tax?

Back

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

Front

What is the total cost including tip?

Back

The total cost including tip is the sum of the original bill and the tip amount.

Front

If a meal costs $40 and you leave a 15% tip, what is the total cost?

Back

Total cost = $40 + ($40 x 0.15) = $40 + $6 = $46.

Front

What is the formula for calculating total cost with sales tax?

Back

Total cost = Price + (Price x Sales Tax Rate).

Front

If an item costs $30 and the sales tax is 8%, what is the total cost?

Back

Total cost = $30 + ($30 x 0.08) = $30 + $2.40 = $32.40.

Front

What is the difference between tip and sales tax?

Back

Tip is a voluntary payment for service, while sales tax is a mandatory charge imposed by the government on purchases.

Front

How much is a 20% tip on a $50 meal?

Back

A 20% tip on a $50 meal is $10.