October 3, 2014 - Sales Tax, Discount, and Tip

Thursday, we discussed how to find percent of a number, today we learned how to apply what we learned.

Sales Tax - a percentage of the total purchase that is added to your purchase.  In Huntsville our tax rate is 8.25% of your purchase.

Example:
Ms. Acton spent $205.60 at Target. If the sales tax is 6%, what was her final bill?

The first thing you do is determine the percent question being asked:

What is 6% of $205.60?

.06 x $205.60 = 12.336  We round this amount to the nearest cent, $12.34 and add that amount to the amount Ms. Acton spent.

$205.60 + $12.34 = $217.94

Her final bill was $217.94.

Discount - a percentage of the total purchase that is subtracted from your purchase.

Example:
Macy's is having a one-day 35% off special. If Sara bought $124.50 worth of items, what would the final bill total after applying the discount of 35%?

So what is the percent question:  What is 35% of $124.50?

0.35 x $124.50 = 43.575 = $43.58 is the amount of discount.  You subtract this amount from $124.50.

$124.50 - $43.58 = $80.92   Sara's final bill is $80.92.

Tip (gratuity) - a percentage of your bill at a restaurant that you leave for the wait staff.

Example:

The Kerwoods went out to eat at Chille's. If there bill was $58.65 and they gave their server a 15% tip, how much did they pay altogether?

The question is What is 15% of $58.65?

0.15 x $58.65 = 8.7975 = $8.80 is the amount of tip the Kerwoods should leave.  Now the question asks how much did they pay all together?  So you need to add the bill total and the tip together.

$58.65 + $8.80 = $67.45 is the total amount spent by the Kerwood family at Chille's.