Sales Tax and Discount Sales tax and

Sales Tax and Discount

Sales tax and discount • Sales tax - is an additional amount of money charged on items people buy. The total cost is the regular price plus the sales tax. • Discount – the amount by which the regular price of an item is reduced. The sale price is the regular price minus the discount.

Sales Tax • The local, state, or federal government receives this money. • For example if: • New York State sales tax is 4% • United States sales tax is 4. 25% • Total rate of tax is 8. 25%

Sales Tax: Finding the total cost. • A pair of shoes cost $90, and the sales tax is 4. 25%. What is the total cost of the shoes? • First find the amount of sales tax. 4. 25% of 90 = (of means multiply!) 0. 0425 x 90 = $3. 83 (This is the amount of tax being charged on the sale. So to find the total cost we add the tax to the original price. )

Sales Tax: Finding the total cost. Add the sales tax to the original price. 90 + 3. 83 = $93. 83 is the total cost of the shoes.

Sales Tax • A set of golf balls sells for $20, and the sales tax is 5. 75%. What is the total cost? 5. 75% of 20 = 0. 0575 x 20 =$1. 15 Add the sales tax to the original price. $20 + $1. 15 = $21. 15

Sales Tax • Your Turn: • A video game system cost $130 and the sales tax is 6. 5%. What is the total cost of the video game system? The total cost = $138. 45

Tips • We calculate tip using the same methods as we use to calculate tax. Ex. Your family goes out to eat and the final bill is $92. Your parents want to leave a 15% tip. How much should they leave? 15% of $92 = 0. 15 x 92 = $13. 80

Tax and Tip • When you go out, you usually have to pay tax and tip. How do you find the total cost? 1. Calculate the tax. 2. Add the tax to the subtotal (original total). 3. Using the new total, calculate the tip. 4. Add the tip to your new total to get the final cost.

Tax and Tip Ex. Below is your check from the local diner. subtotal = $42. 88 tax = 3. 26 % tip = 15% How much money should you leave on the table?

Discount: Finding the sale price. • Alan wants to buy a bike that has a regular price of $169. This week the bike is on sale at a 35% discount. What is the sale price of the bike? • 35% of 169 • 35% x 169 = • The discount is $59. 15

Discount: Finding the sale price. • Subtract the discount from the original price. • $169 - $59. 15 = • The sale price is $109. 85

Discount • Your Turn: • Whitney wants to buy a new coat that has a regular price of $185. This weekend, the coat is on sale at 33% off. What is the sale price of the coat? • $123. 95

Find the Percent of the Discount • An electric guitar is on sale. What is the percent of the discount? Original Price • First find the amount of the $299. 95 discount. Sale Price $299. 95 - $179. 99 = $179. 99 $119. 96 This is the amount you save. $119. 96 is what percent of $299. 95

Find the Percent of the Discount • $119. 96 is what percent of $299. 95 119. 96 299. 95 = p 100 p = 39. 99 Round to the nearest whole number. p = 40 The discount is 40%

Find the percent of discount • Your Turn: • A sports watch has an original price of $86. The sale price is $60. 20. What is the percent of discount? • 30%