1. Tax, tip, and Markup
Notes and examples

2. What is sales tax?
* a state government tax charged for certain goods and services.
* It is normally a percentage. It is added to the purchase price or retail price of the item or service.

3. How do I calculate tax?
EXAMPLE: Georgia’s sales tax is 7%. (7% = 0.07)
*HINT : For every $1 – $0.07 is added.
You can find the total price by multiplying your purchase price by 1.07 (or the equivalent for local sales tax)

4. A book is $10. There is 7% sales tax on the book. What is the total?
10.00 x The book cost ______________.

5. What is tip? * a percent earned by a person providing service
EX: waitress, deliveries

6. How do I calculate tip?
You calculate tip by finding the % of a number.
EX: Your food bill at Chilies was $ You leave a 15% tip. What is the total cost of the meal?

7. What is a markup? What is retail price?
* a percent or amount of increase a retail store charges to earn a profit.
WHAT IS RETAIL PRICE?
* The price at which a store sells items to customers.
Retail price = wholesale price + markup

8. How do I find retail price?
Example: wholesale price = $50
percent markup = 30%
Markup = .30 x $50
= $15
Retail price = $50 + $15
= $65
The retail price is $65.