Tax, Tip, and Discount Practice

Front

What is sales tax?

Back

Sales tax is a percentage of the purchase price added to the total cost of an item, collected by the seller and paid to the government.

Front

How do you calculate the final price of an item including sales tax?

Back

To calculate the final price, multiply the original price by the sales tax rate (as a decimal), then add that amount to the original price.

Front

If a T.V costs $990 and has a 9% sales tax, what is the final price?

Back

$1,079.10

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 $26 and you want to leave a 15% tip, how much is the tip?

Back

$3.90

Front

What is the formula to calculate the total bill including tip?

Back

Total Bill = Original Bill + (Original Bill × Tip Percentage)