Tax, Tip, Discount

Front

What is sales tax?

Back

Sales tax is a percentage of the purchase price that is added to the total cost of an item, 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 $100 item with a 7% tax, the tax is $100 x 0.07 = $7.

Front

What is a tip?

Back

A tip is a small amount of money given to someone for their service, typically 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 $50 bill with a 15% tip, the tip is $50 x 0.15 = $7.50.

Front

What is a discount?

Back

A discount is a reduction in the price of an item, usually expressed as a percentage of the original price.

Front

How do you calculate a discount?

Back

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

Front

What is the total cost after tax?

Back

The total cost after tax is the original price plus the sales tax. For example, if an item costs $100 and the tax is $7, the total cost is $100 + $7 = $107.

Front

What is the total cost after tip?

Back

The total cost after tip is the original bill plus the tip amount. For example, if the bill is $50 and the tip is $7.50, the total cost is $50 + $7.50 = $57.50.

Front

What does it mean to apply a discount?

Back

Applying a discount means reducing the original price of an item by a certain percentage, resulting in a lower final price.

Front

If an item costs $80 and has a 20% discount, what is the final price?

Back

The discount is $80 x 0.20 = $16. The final price is $80 - $16 = $64.