Calculate Sales Tax and Discounts

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 purchase price by the sales tax rate (as a decimal). For example, for a $100 item with a 10% sales tax, the tax is $100 x 0.10 = $10.

Front

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

Back

Total Cost = Purchase Price + (Purchase 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 discount?

Back

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

Front

How do you calculate the sale price after a discount?

Back

Sale Price = Original Price - (Original Price x Discount Rate).

Front

If a shirt originally costs $20 and is on sale for 15% off, what is the sale price?

Back

Sale Price = $20 - ($20 x 0.15) = $17.

Front

What does 'tip' mean in a restaurant context?

Back

A tip is a small amount of money given to a server as a reward for good service, usually calculated as a percentage of the total bill.

Front

How do you calculate a tip?

Back

Tip = Total Bill x Tip Rate. For example, for a $50 bill with a 20% tip, the tip is $50 x 0.20 = $10.

Front

If a meal costs $30 and you want to leave a 15% tip, how much is the tip?

Back

Tip = $30 x 0.15 = $4.50.