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Chapter 5 Spend Wisely

Chapter 5 Spend Wisely. 5.1 Sales Tax. Sales Tax on Purchases. A % of price of an item or a % of all taxable items Sellers collect the sales tax from consumers for the government Sales x Price = Sales Tax tax rate of item Price + Sales Tax = Total Cost of item.

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Chapter 5 Spend Wisely

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  1. Chapter 5 Spend Wisely

  2. 5.1 Sales Tax

  3. Sales Tax on Purchases • A % of price of an item or a % of all taxable items • Sellers collect the sales tax from consumers for the government • Sales x Price = Sales Tax tax rate of item • Price + Sales Tax = Total Cost of item

  4. 89.99*0.045 = 4.05+89.99= 94.04 B. 3.5+1.8=5.3% 369.89*0.053= 19.06+369.89 = 389.49

  5. Nontaxable Items • Food, prescription drugs, labor, or services Sales tax = Sales x Subtotal of Taxable tax rate items Total = Subtotal + Subtotal + Sales Taxable Items Non Taxable Tax Items

  6. C. 309.59*.0525 = 16.25+309.59+56= 381.84 D.462.53*.0675= 31.22+462.53+225= 718.75

  7. 5.2 Sales Receipts

  8. Sales Slips Extensions • Sales slips show: • Number of units or quantity and description • Unit price • Extension = Unit price x Quantity of each item • Subtotal • Sales Tax • Total Sale

  9. 600/100=6 6 x 8.99 = 53.94 B. 300/100 = 3 3*85.99= 257.97

  10. Sales Slip Totals Subtotal = Sum of extensions Sales tax = subtotal x sales tax rate Total of slip = subtotal + sales tax amount

  11. C 3*3.89 5*5.79 11.67+28.95 = 40.62 * 0.0385 = 1.56 +40.62 = 42.18 D. 139.89*2= 89.99*2 = 459.76 * 0.075= 34.49+459.76= 494.24

  12. 5.3 Unit Price

  13. Unit Price Comparison • Price of one item or one measure of item • 3.29/18 = 0.18 • 3.99/24 = 0.17

  14. Group Pricing C. 0.97/3 = 0.33 D. 53/5 = 10.60

  15. 5.4 Comparative Shopping

  16. Prices at Sales, Different Stores, and in Different Amounts • Can buy in bulk at discount stores • 16.29-15.67 = • 18.25*2 = 36.5-33.49= C. 1.49/53.7 = 1.89/80.6 = D. 6*23.99 = 3*32 = 143.94-96=

  17. Rental Options • Can rent items you do not use often or need for short period of time • Time periods-hourly, daily, weekly, and monthly

  18. E. Daily 130*4=520 or 600? F. Hourly 5*18 = 90 or 56 for 4 hours or 80 for 8 hours

  19. Rent or Buy • If need something on regular basis, should I buy? • 2 steps: • Calculate annual cost of renting • Calculate how many years of renting to equal purchase price

  20. G. 169.99/25 = 6.8 days H. 23.99*4 =95.96 per year to rent 349.99/95.96 = 3.6 years

  21. 5.5 Personal Internet Access

  22. Internet Connection Costs • ISP (Internet Service Provider) – connects home computer to internet • Fees include: • Set-up fees • Equipment fees • Monthly access fees

  23. Ways to connect: • Dial-up connection • Cable connection • Digital subscriber line connection • Satellite connection

  24. Can have charges for: • 2nd phone line • E-mail account • Web page • Protect computer from viruses with firewall or antivirus software

  25. 39.95+5=44.95*12 = 539.40 539.40+25+75+36.99 = 676.39 B. 40*24 = 960 450 * 2 = 900 875 for 2 years 960-875 = 85

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