Sales Tax, Discount, Commission with a little bit of Interest Ms. Robbins 2010

Copy the chart and complete TopicDefinitionExample Sales Tax Discount Commission Interest

Sales Tax a tax on consumption.taxconsumption normally a certain percentage that is added onto the price of a good or service that is purchased.percentage In Canada, there are 3 taxes, PST, GST and HST

Sales Tax Example You purchase a 160GB iPod for $ at Best Buy in Toronto. What is your total cost? Cost = $ $ PST = 0.08 X $ GST = 0.05 X $ Total =$ n=&langid=EN&test%5Fcookie=1

Discount To deduct or subtract from a cost or price. Example: A store is having a 30% off sale. The 30% is the discount.

Discount Example A DVD has a discount of 30%. The original cost is $24.00 What is the discounted price before taxes? How much do you save before taxes? 30% of $24.00 = d 0.30 X 24 = d $7.20 = d Discounted price $ $16.80 before taxes You save $7.20 before taxes.

Commission A fee or percentage allowed to a sales representative Real Estate agents Sales people

Commission Example A real estate agent sells a home for $939, 000. She earns a commission of 3.5% How much does the agent earn on this sale? 3.5% of $939,000 = c X 939,000 = c $32,865 = c The real estate agent earns $32,865.

Interest A charge or “rent” for a loan, usually a percentage of the amount loaned. Example: Charge Cards

Interest Example Ellen borrowed $8, for her tuition fees in the Engineering program at U of T. She is charged 3.5% simple interest each year. What is the amount of interest she pays/year? 3.5% of $ = m X = m $ = m

What do these terms have in common? These terms all involve percent and $ How do we use them?

Now it is time to go shopping. Be clear in setting up your answers. Use good form. Complete pp , #2,4,7,8,10 Complete pp. 85, #4,5,6,7 Challenge #8