Calculating Tax, Tip, and Discount with Proportions

What is the primary purpose of sales tax?

• To increase the store's profit

• To pay the store employees

• To provide discounts to customers

• To pay for government services

If you buy an item for $80 in Minnesota with a sales tax rate of 6.88%, how much will you pay in total?

• $88.00

• $80.68

• $86.88

• $85.50

What is a tip?

• A mandatory tax on services

• A sum of money added to the basic price for a service

• A discount on the total bill

• A fee for using a credit card

If your restaurant bill is $54.25 and you leave a 15% tip, how much is the tip?

• $6.50

• $7.50

• $8.14

• $10.00

What is a discount?

• A mandatory fee

• A decrease in the original price

• An increase in the original price

• A type of tax

If a pair of shorts originally costs $50 and is on a 25% discount, what is the sale price?

• $25.00

• $12.50

• $50.00

• $37.50

What is a markup?

• A discount given by the store

• A type of tax

• An increase in price for profit

• A decrease in price due to low demand

If a store buys a bike for $70 and marks it up by 30%, what is the new selling price?

• $91.00

• $80.00

• $100.00

• $70.00

If you buy jeans for $42 with a 25% discount, how much do you pay?

• $10.50

• $42.00

• $25.00

• $31.50

If your meal costs $73.28 and you leave a 15% tip, what is the total amount you need to pay?

• $84.27

• $100.00

• $10.99

• $73.28