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Financial Literacy: Sales tax, Tip, and Markup

Financial Literacy: Sales tax, Tip, and Markup. Sales tax - tax added onto an item when it is sold. EX1). Find the total cost of an item priced $43 with a sales tax of 8%. Method 1. Step 1. Change % to decimal. 8% = 0.08. Step 2. Multiply decimal and cost. 43. X. 0.08. = 3.44.

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Financial Literacy: Sales tax, Tip, and Markup

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  1. Financial Literacy: Sales tax, Tip, and Markup

  2. Sales tax - tax added onto an item when it is sold. EX1) Find the total cost of an item priced $43 with a sales tax of 8%. Method 1 Step 1 Change % to decimal 8% = 0.08 Step 2 Multiply decimal and cost 43 X 0.08 = 3.44 Round to hundredths if necessary + Step 3 Add product to original cost 43 3.44 = 46.44

  3. EX2) Find the total cost of an item priced $75 with a sales tax of 6.75%. Method 2 Add percent of tax to 100% 6.75% + 100% = 106.75% Step 1 Change % to decimal Step 2 106.75% = 1.0675 Step 3 Multiply decimal and cost 75 X 1.0675 = 80.0625 Step 4 Round to hundredths if necessary Total Cost = $80.06

  4. Tip (gratuity)- small amount of money in return for service. Usually a percent of the cost of service. Same process to solve tax is used to solve tip. EX3) You want to leave a 15% tip on a bill of $65. How much is the tip? What is the total cost of bill? 15% = 0.15 65 X 0.15 = 9.75 + 65 9.75 = 74.75 EX4) A phone cost $75 with a sales tax of 8.75%. How much change would you have if you pay the bill with $85. 8.75% +100% = 108.75% 75 X 1.0875 = 81.5625 - 85 81.56 = $3.44

  5. Markup - percent of increase A store buys shoes from a manufacturer for $25. The markup is 30%. What is the selling price? Find % of markup Step 1 25 X 43% = 25 X 0.43 = 10.75 Add the markup to the store cost Step 2 25 + 10.75 = $35.75

  6. Assignment Page 271 Problems 2-10 evens, 17

  7. Notes

  8. Financial Literacy: Sales tax, Tip, and Markup Date _____________

  9. Sales tax - tax added onto an item when it is sold. EX1) Find the total cost of an item priced ____with a sales tax of ___. Method 1 Step 1 Change % to _______ Step 2 Multiply decimal and ______ Round to hundredths if necessary Step 3 Add _________ to ___________ cost

  10. EX2) Find the total cost of an item priced ______with a sales tax of _________. Method 2 Add ______of tax to _______ Step 1 Change % to decimal Step 2 Step 3 Multiply decimal and cost Step 4 Round to hundredths if necessary

  11. Tip (gratuity)- small amount of money in return for service. Usually a percent of the cost of service. Same process to solve tax is used to solve tip. EX3) You want to leave a _____ tip on a bill of _____. How much is the tip? What is the total cost of bill? EX4) A phone cost _____with a sales tax of ________. How much change would you have if you pay the bill with ______.

  12. Markup - percent of increase A store buys shoes from a manufacturer for _____. The markup is ____. What is the selling price? Find ______________ Step 1 _____ the markup to the store cost Step 2

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