Gratuity

​M2L3

Taxes and Gratuities

7th Grade Math 10/31​

​Vocabulary

​Gratuity is usually a percentage of the cost of a service added to the cost of the service.

​Usually 15-20%

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​Gratuity / Tip

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​Sales tax is a SET percentage of the cost of an item that is added to the cost of an item.

Usually 5-10%​

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​Sales Tax

​Sales Tax

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Item Cost + ( Item Cost x % Sales Tax) = Final Cost

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​Gratuity / Tip

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Service Cost + (Service Cost x % Gratuity) = Total Cost

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Multiple Choice

How would you change 45% to a decimal?

• Move the decimal 2 places to the left
• Move the decimal 2 places to the right
• Move the decimal 3 places to the left
• Move the decimal 3 places to the right

Multiple Choice

Write 8.25% as a decimal. 

• 0.0825
• 0.825
• 82.5
• 825

Multiple Choice

25% as a decimal:  

• 0.25
• 02.5
• 25
• 2500

Multiple Choice

Sales tax is __________ to the price.

• subtracted
• added
• multiplied
• divided

Multiple Choice

Round 18.90843 to the correct decimal place so that it deals with money.

• $18.90
• $18.91
• $18.09
• $19.00

Multiple Choice

What is the total cost with sales tax?
Price $17.95
Tax 6%

• $19.03
• $18.50
• $1.08
• $2.15

Multiple Choice

You purchase four Goodyear Tires for $74.00 each. If the sales tax is 8%, then how much will you owe in sales tax?

• $5.19

• $23.68

• $79.92

• $319.68

Multiple Choice

True or False: A gratuity is a tip or gift usually in the form of money that you give in exchange for his or her service.

• True

• False

Multiple Choice

A business pays a catering company $875 for a special event. The business decides to give the catering company a 25% tip. How much is the tip, and how much in total did the business pay to the catering company?

• Tip: $253.57 Total: $957.63

• Tip: $218.75 Total: $1,093.75

• Tip: $263.65 Total: $1,097.85

• Tip: $243.23 Total: $996.92

Multiple Choice

Mr. and Mrs. Smith pay their babysitter a total of $70. They also decide to give a tip 32%. How much is the tip, and how much do Mr. and Mrs. Smith pay the babysitter?

• Tip: $22.40 Total: $92.40

• Tip: $20.45 Total: $90.45

• Tip: $21.50 Total: $91.50

• Tip: $23.55 Total: $93.55