1. Sales Tax and Discount Lesson 8-5

2. Sales tax and discount Sales tax - is an additional amount of money charged on items people buy. The total cost is the regular price plus the sales tax. Discount – the amount by which the regular price of an item is reduced. The sale price is the regular price minus the discount.

3. Sales Tax The local, state, or federal government receives this money. For example if: Louisiana State sales tax is 4% Vermilion Parish sales tax is 4.5% Total rate of tax is 8.5%

4. Sales Tax: Finding the total cost. A pair of shoes cost $90, and the sales tax is 4.25%. What is the total cost of the shoes? First find the amount of sales tax. 4.25% of 90 = 4.25% x 90 $3.83 (This is the amount of tax being charged on the sale. So to find the total cost we add the tax to the original price.)

5. Sales Tax: Finding the total cost. Add the sales tax to the original price. 90 + 3.83 = $93.83 is the total cost of the shoes.

6. Sales Tax A set of golf balls sells for $20, and the sales tax is 5.75%. What is the total cost? 5.75% of 20 5.75% x 20 = $1.15 $20 + $1.15 = $21.15 Add the sales tax to the original price.

7. Sales Tax Your Turn: A video game system cost $130 and the sales tax is 6.5%. What is the total cost of the video game system? The total cost = $138.45

8. Discount: Finding the sale price. Alan wants to buy a bike that has a regular price of $169. This week the bike is on sale at a 35% discount. What is the sale price of the bike? 35% of 169 35% x 169 = The discount is $59.15

9. Subtract the discount from the original price. $169 - $59.15 = The sale price is $109.85

10. Discount Your Turn: Whitney wants to buy a new coat that has a regular price of $185. This weekend, the coat is on sale at 33% off. What is the sale price of the coat? $123.95