Calculating Sales Tax, Tips, and Markup

This lesson covers how to use percents to calculate sales tax, tips, and markup. It explains that sales tax is a percentage of the regular price added to the total cost. The video provides a detailed example of calculating sales tax on a $140 item with a 5% tax rate. An alternative method is also shown, where the sales tax percent is added to 100% to find the total cost. The lesson further explains tips as a small amount added for services and markup as the increase in price for items sold by stores. A combined example of calculating sales tax and tip on a haircut is provided. The lesson concludes with credits to the Math Fun Academy.

What is sales tax?

• A discount on the regular price

• A fee for using a credit card

• A refund on purchased items

• An additional amount of money charged on items

How is sales tax calculated?

• As a percent of the total cost

• As a fixed amount

• As a percent of the regular price

• As a percent of the discounted price

If an item costs $140 and the sales tax is 5%, what is the total cost?

• $145

• $155

• $147

• $150

What is another way to calculate the total cost including sales tax?

• Subtract the sales tax percent from 100 percent and then calculate the new percent of the regular price

• Add the sales tax percent to 100 percent and then calculate the new percent of the regular price

• Multiply the regular price by the sales tax percent

• Divide the regular price by the sales tax percent

What is a tip or gratuity?

• A discount on the regular price

• A small amount of money in return for service

• A fee for using a credit card

• A refund on purchased items

How is the total price calculated when including a tip?

• Regular price times the tip

• Regular price plus the tip

• Regular price divided by the tip

• Regular price minus the tip

What is markup?

• A refund on purchased items

• An additional amount of money charged on items

• The amount a store sells items for more than it pays for them

• A discount on the regular price

How are tips and markup calculated?

• In the same way as sales tax

• Differently from sales tax

• As a fixed amount

• As a percent of the discounted price

If a $28 haircut has a 5% sales tax and a 15% tip, what is the total cost?

• $35.00

• $33.60

• $31.50

• $30.00

What is the combined percent for a $28 haircut with 5% sales tax and a 15% tip?

• 20%

• 10%

• 15%

• 25%