1. Chapter 5 Spend Wisely

2. 5.1 Sales Tax

3. 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

4. 89.99*0.045 = =
94.04
B =5.3%
369.89*0.053= =
389.49

5. 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

6. C *.0525 = =
381.84
D *.0675= =
718.75

7. 5.2 Sales Receipts

8. 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

9. 600/100=6
6 x 8.99 =
53.94
B. 300/100 = 3
3*85.99=
257.97

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

11. C 3*3.89
5*5.79 =
40.62 * =
= 42.18
D *2=
89.99*2 =
* 0.075= =
494.24

12. 5.3 Unit Price

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

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

15. 5.4 Comparative Shopping

16. Prices at Sales, Different Stores, and in Different Amounts
Can buy in bulk at discount stores =
18.25*2 = =
C. 1.49/53.7 =
1.89/80.6 =
D. 6*23.99 =
3*32 = =

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

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

19. 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

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

21. 5.5 Personal Internet Access

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

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

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

25. =44.95*12 = =
B. 40*24 = 960
450 * 2 = 900
875 for 2 years
= 85