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

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

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

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

5.2 Sales Receipts

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

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

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

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

5.3 Unit Price

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

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

5.4 Comparative Shopping

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=

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

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

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

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

5.5 Personal Internet Access

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

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

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

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