Percent and Problem Solving: Sales Tax, Commission, and Discount Chapter 1 / Whole Numbers and Introduction to Algebra Section 7.5 Percent and Problem Solving: Sales Tax, Commission, and Discount

Chapter 1 / Whole Numbers and Introduction to Algebra Calculating Sales Tax and Total Price Most states charge a tax on certain items when purchased called a sales tax. A 5% sales tax rate on a purchase of a $10.00 item gives a sales tax of sales tax = 5% of $10 = 0.05 • $10.00 = $0.50 Martin-Gay, Prealgebra, 5ed

Chapter 1 / Whole Numbers and Introduction to Algebra The total price to the customer would be purchase price sales tax plus $10.00 + $0.50 = $10.50 Martin-Gay, Prealgebra, 5ed

Chapter 1 / Whole Numbers and Introduction to Algebra Sales Tax and Total Price sales tax = tax rate • purchase price total price = purchase price + sales tax Martin-Gay, Prealgebra, 5ed

Chapter 1 / Whole Numbers and Introduction to Algebra Calculating Commissions A wage is payment for performing work. An employee who is paid a commission as a wage is paid a percent of his or her total sales. Commission commission = commission rate • sales Martin-Gay, Prealgebra, 5ed

Chapter 1 / Whole Numbers and Introduction to Algebra Discount and Sale Price amount of discount = discount rate • original price sale price = original price - amount of discount Martin-Gay, Prealgebra, 5ed