Taxes and Gratuities Reteach

Taxes and Gratuities Reteach

​Tax

​A tax is a percentage that is added to the price paid for goods or services.

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​Tax Amount = Sales Tax Rate * Price Paid

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​Total Amount = (1 + Sales Tax Rate) * Price Paid

​Gratuity

​A gratuity or tip is a percentage that is added to the price paid for goods or services.

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​Gratuity Amount = Gratuity Rate * Price Paid

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​Total Amount = (1 + Gratuity Rate) * Price Paid

Alex and her friends went out to lunch at the diner. The bill for lunch was $34.56 which included an 8% sales tax. How much was the price of the lunch before tax​?

A. ​Write an equation to find the total amount y paid given a sales tax of 8%.

B. Substitute the total amount of the bill for the lunch into the equation to calculate the price paid for the lunch.

Multiple Choice

Substitute the total amount of the bill for the lunch into the equation to calculate the price paid for the lunch.

• $34.56

• $32

• $1.08

• $8

If Alex and her friends wa​nted to leave a 15% tip on the amount before taxes, what would be the amount of the tip?

A. Write an equation to find the total amount of the tip y given a gratuity rate of 15%.​

B. Substitute the amount of the bill for the lunch (before tax) into the equation to calculate the tip.

Multiple Choice

Substitute the amount of the bill for the lunch (before tax) into the equation to calculate the tip.

• $15

• $0.15

• $4.80

• $32

​Price After Tax and Tip

​Total Price = Price Paid + Tax Amount + Tip Amount

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​or

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​Total Price = Price After Tax + Tip Amount

​What would be the total cost of the lunch including tax and tip?

Multiple Choice

What would be the total cost of the lunch including tax and tip?

• $39.36

• $32

• $34.56

• $4.80

Open Ended

Questions?