Tax & Tip

Front

What is sales tax?

Back

Sales tax is a percentage of the price of a product 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). For example, for a $24.95 item with a 7% tax, the tax is $24.95 x 0.07 = $1.75.

Front

What is the formula to find the total cost including sales tax?

Back

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

Front

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

Back

Total Cost = $50 + ($50 x 0.08) = $54.

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). For example, for a $26 bill with a 15% tip, the tip is $26 x 0.15 = $3.90.

Front

What is the difference between sales tax and tip?

Back

Sales tax is a government-mandated charge on purchases, while a tip is a voluntary payment for service.

Front

If a meal costs $30 and you want to leave a 20% tip, how much do you leave?

Back

Tip = $30 x 0.20 = $6.00.

Front

What is the total cost of a $15 item with a 10% sales tax?

Back

Total Cost = $15 + ($15 x 0.10) = $16.50.

Front

If you buy two items for $10 each and the sales tax is 5%, what is the total cost?

Back

Total Cost = (2 x $10) + ((2 x $10) x 0.05) = $20 + $1 = $21.