Transcript Document

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
Tip – money given to someone to show appreciation
for a service provided (waiter, hair stylist, valet,
etc.)
Commission – money paid to an employee in
addition
to their salary; usually
based on a
percent they sell (car salesman, real
estate agent,
etc.)
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
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
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
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
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
7% = .07
Step Two:
20% = .20
.07 • 9.68 = 0.68 (tax)
Find the tip
.20 • $9.68 = $1.94 (tip)
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
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)
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)