1. % %
7.RP.3 ~ Use proportional reasoning to solve problems involving percents % %

2. Common uses of Percents
Discounts
Tips or Gratuity
Tax
Commission
Markup
Simple Interest

3. Discounts
A discount is an amount that is subtracted from the regular price of an item.
discount = price x discount rate
total cost = price – discount
Example:
15% off a CD that costs $12.99
$12.99 x 0.15 = $1.95
$12.99 – $1.95 = $11.04 sale price

4. Tips or Gratuity
A tip or gratuity is an amount added to a bill for service
tip = bill x tip rate
total cost = bill + tip
Example:
15% tip on a $37.00 bill
$37.00 x 0.15 = $5.55
$ $5.55 = $42.55 total bill

5. Sales Tax Sales tax is an amount added to the price of an item.
sales tax = price x sales tax rate
total cost = price + sales tax
Example:
11% tax on a scooter costing $79.00
$79.00 x 0.11 = $8.69
$ $8.69 = $87.69 total cost

6. Let’s do a problem with a discount and sales tax!
Caleb bought a shirt for $25 with a discount of 20% and sales tax of 7%. What was the total cost of his shirt?
Correct! $21.40

7. Your task:
You are going toy shopping for the holidays. There are items placed around the room. You and your partner are to choose 10 of these items and fill in the chart. Turn it in when completed.

8. Exit Ticket
Explain on an index card, how you can use your knowledge of discounts in the real world. Give an example. Turn it in to the teacher.

9. Commission
A commission is a percent of a sales amount awarded to the person making the sale.
Example: Bill works as a car salesman and earns 1.5% commission on all sales. One month, his sales were $300,000. To determine his pay:
1.5% x $300,000 = $4,500

10. Markup
A markup is a percent added to the cost of an item to determine the selling price.
Let’s say the sporting goods store bought hiking boots for $85 and is selling them at a 40% markup. The calculation would be:
%(85) = = $119

11. Simple Interest
Simple interest is the percent of an amount borrowed that is paid to the lender in addition to the amount borrowed.
So, you bought a used car for $3,500. The bank gave you a loan at 18% interest for a term of 4 years. The calculation is:
I = p x r x t
3,500 x 18% x 3 = 1,890 ~ therefore,
you would be paying back $5,390 for the car loan with a monthly payment of $