Discount, Tax and Tip Percent Applications by Mrs. Fredericks

1. Discount, Tax and Tip Percent Applicationsby Mrs. Fredericks Remember Percent Problems Proportion Equation = part = percent • whole

2. Discount – an amount of money that is deducted from the regular price of an item when it is on sale. • The discount is a part of the regular price of the item which is the whole. = part = percent • whole = discount = percent• price

3. Discount Example: Maria is buying a shirt regularly priced at $42. It is on sale for 15% off. What is the sale price of the shirt? = discount = percent• price = use the decimal form of the % x = 0.15 • 42 = x = $6.30 off x = $6.30 off so the shirt costs $42 – 6.30 = $35.70

4. Sales tax – a state tax paid on the purchase price of an item. It varies by state and varies as to what items are taxed in a particular state. • The tax is a part of the price of the item being purchased which is the whole. = part = percent • whole = tax = percent• price

5. Tax Example Mark is buying a scooter for $89.75 and he must pay 7 % sales tax. What is his final cost? = tax = percent• price = use the decimal form of the % x = 0.0725 • 89.75 = x = $6.51 (rounded) x = $6.51 (rounded) So the cost is $89.75 + 6.51 = $96.26

6. Tip or Gratuity – an amount of money paid in return for a service, it is paid on the price of the food or service. • The tip is part of the price paid for the item or service which is the whole. = part = percent • whole = tip = percent• price

7. Tip example Karen is riding in a taxicab, her fare is $15. The ride was great so she wants to give the driver a 20% tip. What is the total cost? = tip = percent• price Use the decimal form of the % = x = 0.20 • 15 = x = $3.00 tip x = $3.00 So the total cost is $15 + 3 = $18

8. Finding final cost calculating discount and sales tax. Rob is buying a skateboard with a price of $119.50. It is on sale for 20 % off and he will pay 7 % sales tax. What is the final cost? Think about which calculation you should do first. Think about what price you pay sales tax on.

9. We find the discount first = discount = percent• price = use the decimal form of the % = x = 0.20 • 119.50 x = $23.50 x = $23.50 (discount is subtracted) Now find the sale price $119.50 - $23.50 = $95.60 • Find tax using the sale price = tax = percent• price = use the decimal form of the % = x = 0.07 • 95.60 x = $6.69 x = $6.69 (tax is added) Final cost = $95.60 + 6.69 = $102.29

10. Finding final cost by calculating tax and tip. Jill is taking her friend to lunch. The meal costs $42 and she must pay 6 % sales tax. Her service was great so she wants to leave a 20 % tip. What is the final cost of the meal? You will calculate the tip on the price of the meal. You will calculate the tax on the price of the meal.

11. We will find the sales tax first. = tax = percent• price = Usethe decimal form of the % = x = 0.06 • 42 x = $2.52 x = $2.52 (tax is added) • We will find the tip next. (Use the same $42 price) = tip = percent• price Use the decimal form of the % = x = 0.20 • 42 = x = $8.40 (tip is added) x = $ 8.40 • Final cost add tip, tax and price: $42 + 2.52 + 8.40 = $ 52.92