Sales Tax and Tip Questions

Front

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.

Front

How do you calculate sales tax?

Back

To calculate sales tax, multiply the price of the item by the sales tax rate (as a decimal).

Front

If an item costs $50 and the sales tax rate is 8%, what is the sales tax?

Back

$4.00 (calculated as $50 x 0.08).

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 (as a decimal).

Front

If a dinner bill is $40 and you want to leave a 15% tip, how much is the tip?

Back

$6.00 (calculated as $40 x 0.15).

Front

What is the total cost if a meal is $30 and a 20% tip is added?

Back

$36.00 (calculated as $30 + ($30 x 0.20)).

Front

What does it mean to add sales tax to a price?

Back

Adding sales tax means increasing the original price by the amount of tax calculated.

Front

If a TV costs $899 and the sales tax is 6.5%, what is the total cost including tax?

Back

$957.44 (calculated as $899 + ($899 x 0.065)).

Front

What is the formula for calculating the total cost including tip?

Back

Total Cost = Original Price + (Original Price x Tip Percentage).