Sales Tax and Discounts

How do we calculate sales tax and discounts?​

By Mary Allgood

Warm-up Review Questions:

Multiple Choice

How do we change a percent into a decimal?

• Remove the % sign and divide by 100. This will move the decimals two places to the left.

• Remove the % sign and multiply by 100. This will move the decimal two places to the right.

Multiple Choice

Change 20% into a decimal.

• 2.0

• 0.20

• 20.0

Multiple Choice

How do you change 7% into a decimal?

• 0.70

• 7.00

• 0.07

Multiple Choice

How would you round the following number so that it looks like money?

12.3487256

• $12.33

• $12.34

• $12.35

• $12.36

Discounts

To calculate discounts we will follow these steps:

1. Change the % into a decimal.

2. Multiply the Original Amount by the discount amount.

3. Subtract your answer in step 2 from the original amount.

​Example:

How to Calculate a Discount

Multiple Choice

How much will it cost to buy a toy that cost $25, but has a discount of 10% off?

• $22.05

• $22.50

• $27.05

• $27.50

Multiple Choice

How much will it cost to buy a toy that cost $40, but has a discount of 15% off?

• $34

• $46

• $40.15

• $39.85

Sales Tax

To calculate sales tax we will follow these steps:

1. Change the % into a decimal.

2. Multiply the Original Amount by the tax amount.

3. Add your answer in step 2 to the original amount.

​Example:

How to Calculate Tax

Multiple Choice

How much will it cost to buy a shirt that cost $15.00 with a sales tax of 6%?

• $15.00

• $15.06

• $15.09

• $15.90

Multiple Choice

How much will it cost to buy a shirt that cost $22.50 with a sales tax of 6%?

• $23.08

• $23.85

• $24.85

• $24.06

Let's put it together!!!

Multiple Choice

How much would it cost to buy a desk that cost $75, but has a 20% off coupon? Remember to also calculate the sales tax for your item, which is 6%, so that you can get the total cost.

• $60

• $90

• $63.60

• $95.40