Sale Tax, Tip, Discount, Commission

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What is sales tax?

Back

Sales tax is a percentage of the sale price of goods and services that is collected by the seller and paid to the government.

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How do you calculate sales tax?

Back

To calculate sales tax, multiply the sale price by the sales tax rate (as a decimal). For example, for a $100 item with a 6.5% tax rate: $100 x 0.065 = $6.50.

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What is a tip?

Back

A tip is a small amount of money given to someone for their service, typically in the restaurant industry.

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How do you calculate a tip?

Back

To calculate a tip, multiply the total bill by the tip percentage (as a decimal). For example, for a $50 bill with a 20% tip: $50 x 0.20 = $10.

Front

What is a discount?

Back

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

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How do you calculate a discount?

Back

To calculate a discount, multiply the original price by the discount percentage (as a decimal) and subtract that amount from the original price.

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What is commission?

Back

Commission is a fee paid to an employee or agent for their services, usually calculated as a percentage of the sales they generate.

Front

How do you calculate commission?

Back

To calculate commission, multiply the total sales amount by the commission rate (as a decimal). For example, for $1,000 in sales with a 5% commission: $1,000 x 0.05 = $50.

Front

If an item costs $100 and the sales tax is 8%, what is the total cost?

Back

Total cost = $100 + ($100 x 0.08) = $100 + $8 = $108.

Front

If a meal costs $30 and you want to leave a 15% tip, how much is the tip?

Back

Tip = $30 x 0.15 = $4.50.