Tax Tip Discount Practice

Front

What is sales tax?

Back

Sales tax is a percentage of the sale price of goods and services that is collected by the seller and paid to the government.

Front

How do you calculate the total cost including sales tax?

Back

To calculate the total cost including sales tax, multiply the original price by the sales tax rate (as a decimal) and add that amount to the original price.

Front

What is a tip?

Back

A tip is a small amount of money given to someone for their service, typically calculated as a percentage of the total bill.

Front

How do you calculate the total cost including a tip?

Back

To calculate the total cost including a tip, multiply the original bill by the tip percentage (as a decimal) and add that amount to the original bill.

Front

What is a discount?

Back

A discount is a reduction in the price of a product or service, usually expressed as a percentage of the original price.

Front

How do you calculate the total cost after a discount?

Back

To calculate the total cost after 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 formula for calculating sales tax?

Back

Sales Tax = Original Price x Sales Tax Rate.

Front

What is the formula for calculating a tip?

Back

Tip = Original Bill x Tip Percentage.

Front

What is the formula for calculating a discount?

Back

Discount = Original Price x Discount Rate.

Front

If a product costs $50 and has a 10% discount, what is the new price?

Back

New Price = $50 - ($50 x 0.10) = $45.