Sales Tax and Tip Questions

Front

What is sales tax?

Back

Money added to the cost of items or services.

Front

How is sales tax applied to a purchase?

Back

Sales tax is added to the price of the item.

Front

If an item costs $24.95 and the sales tax is 7%, how much is the sales tax?

Back

$1.75

Front

What is the formula to calculate sales tax?

Back

Sales Tax = Price × Tax Rate.

Front

If you buy a dress for $50 and the sales tax is 8%, what is the final price?

Back

$54.00.

Front

What does a tip represent in a restaurant setting?

Back

A tip is a percentage of the total bill given to the service staff.

Front

How do you calculate a 20% tip on a $20 meal?

Back

Tip = $20 × 0.20 = $4.

Front

What is the final price of an item after adding sales tax?

Back

Final Price = Price + Sales Tax.

Front

If a phone costs $500 and has a sales tax of 15%, what is the final price?

Back

$575.

Front

What is the purpose of sales tax?

Back

To generate revenue for government services.