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Calculating Tax, Tips, and Commission

Calculating Tax, Tips, and Commission. Sales Tax – calculated by finding a certain percent of the purchase price; the percentage answer is then added back to the original price to find the total cost.

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Calculating Tax, Tips, and Commission

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  1. Calculating Tax, Tips, and Commission

  2. Sales Tax – calculated by finding a certain percent of the purchase price; the percentage answer is then added back to the original price to find the total cost

  3. Tip – money given to someone to show appreciation for a service provided (waiter, hair stylist, valet, etc.)

  4. Commission – money paid to an employee in addition to their salary; usually based on a percent they sell (car salesman, real estate agent, etc.)

  5. Calculating Sales Tax: A cd costs $10.00. In the parish you live in the sales tax is 4%. What will be the total cost you pay with sales tax? Step One: Change the percent to a decimal 4% = .04 Step Two: Multiply the price and the decimal .04 • $10.00 = 0.40 (tax) Step Three: Add the tax back to original price 0.40 + 10.00 = $10.40

  6. Calculating Sales Tax: A sweater costs $26.75. The store will add 7.5% sales tax to your purchase. What will be the total cost you pay with sales tax? Step One: Change the percent to a decimal 7.5% = .075 Step Two: Multiply the price and the decimal .075 • $26.75 = $2.01 (tax) Step Three: Add the tax back to original price 2.01 + 26.75 = $28.76

  7. Calculating Tips: Last night our dinner costs $23.56. If we left our waiter an 18% tip, what was our total bill? Step One: Change the percent to a decimal 18% = .18 Step Two: Multiply the price and the decimal .18 • $23.56 = $4.24 (tip) Step Three: Add the tip back to original price 4.24 + 23.56 = $27.80

  8. Calculating Tips: Our cab ride costs us $18.25. If we give the driver a 15% tip, what was our total bill? Step One: Change the percent to a decimal 15% = .15 Step Two: Multiply the price and the decimal .15 • $18.25 = $2.74 (tip) Step Three: Add the tip back to original price 2.74 + 18.25 = $20.99

  9. Calculating Tips: You treat a friend to lunch. The total cost of the food is $9.68. A 7% sales tax will be added and you want to give a 20% tip for excellent service. How much will you pay for lunch? Step One: Find the sales tax .07 • 9.68 = 0.68 (tax) 7% = .07 Step Two: Find the tip 20% = .20 .20 • $9.68 = $1.94 (tip)

  10. Calculating Tips: Step Three: Add the tax and tip to the bill to find the total .68 (tax) + 1.94 (tip) + 9.68 (cost) = $12.30

  11. Calculating Commission: A salesperson receives a salary of $650 each week, plus a commission of 4% of all sales. In one week, his sales are $1,250. What does the salesperson earn that week? Total Earnings = salary + commission Step One: Find the commission .04 • $1250 = $50.00 (commission)

  12. Calculating Commission: A salesperson receives a salary of $650 each week, plus a commission of 4% of all sales. In one week, his sales are $1,250. What does the salesperson earn that week? Total Earnings = salary + commission Step Two: Add the commission to salary $50 + $650 = $700.00 (total earnings)

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