1. Calculating Tax, Tips, and Commission

2. Sales Tax – calculated by. finding a certain percent
Sales Tax – calculated by finding a certain percent of the purchase price; the percentage answer is then added back to the original price to find the total cost

3. Tip – money given to someone. to show appreciation for
Tip – money given to someone to show appreciation for a service provided (waiter, hair stylist, valet, etc.)

4. Commission – money paid to. an employee in addition
Commission – money paid to an employee in addition to their salary; usually based on a percent they sell (car salesman, real estate agent, etc.)

5. Calculating Sales Tax:
A cd costs $ In the parish you live in the sales tax is 4%. What will be the total cost you pay with sales tax?
Step One:
Change the percent to a decimal
4% = .04
Step Two:
Multiply the price and the decimal
.04 • $ = (tax)
Step Three:
Add the tax back to original price
= $10.40

6. Calculating Sales Tax:
A sweater costs $ The store will add 7.5% sales tax to your purchase. What will be the total cost you pay with sales tax?
Step One:
Change the percent to a decimal
7.5% = .075
Step Two:
Multiply the price and the decimal
.075 • $ = $2.01 (tax)
Step Three:
Add the tax back to original price
= $28.76

7. Calculating Tips: Step One: Step Two: Step Three:
Last night our dinner costs $ If
we left our waiter an 18% tip, what
was our total bill?
Step One:
Change the percent to a decimal
18% = .18
Step Two:
Multiply the price and the decimal
.18 • $ = $4.24 (tip)
Step Three:
Add the tip back to original price
= $27.80

8. Calculating Tips: Step One: Step Two: Step Three:
Our cab ride costs us $ If we
give the driver a 15% tip, what was
our total bill?
Step One:
Change the percent to a decimal
15% = .15
Step Two:
Multiply the price and the decimal
.15 • $ = $2.74 (tip)
Step Three:
Add the tip back to original price
= $20.99

9. Calculating Tips: Step One: Step Two:
You treat a friend to lunch. The total cost of the food is $9.68. A 7% sales tax will be added and you want to give a 20% tip for excellent service. How much will you pay for lunch?
Step One:
Find the sales tax
7% = .07
.07 • = (tax)
Step Two:
Find the tip
20% = .20
.20 • $9.68 = $1.94 (tip)

10. Calculating Tips: Step Three:
Add the tax and tip to the bill to find the total
.68 (tax) (tip) (cost) = $12.30

11. Calculating Commission:
A salesperson receives a salary of $650 each week, plus a commission of 4% of all sales. In one week, his sales are $1,250. What does the salesperson earn that week?
Total Earnings = salary + commission
Step One:
Find the commission
.04 • $1250 = $50.00 (commission)

12. Calculating Commission:
A salesperson receives a salary of $650 each week, plus a commission of 4% of all sales. In one week, his sales are $1,250. What does the salesperson earn that week?
Total Earnings = salary + commission
Step Two:
Add the commission to salary
$ $650 = $ (total earnings)