1. Sales Tax, Discount, Commission with a little bit of Interest Ms. Robbins 2010

2. Copy the chart and complete TopicDefinitionExample Sales Tax Discount Commission Interest

3. Sales Tax a tax on consumption.taxconsumption normally a certain percentage that is added onto the price of a good or service that is purchased.percentage In Canada, there are 3 taxes, PST, GST and HST http://www.taxtips.ca/provincial_sales_tax.htm#ProvincialPSTRateshttp://www.taxtips.ca/provincial_sales_tax.htm#ProvincialPSTRates

4. Sales Tax Example You purchase a 160GB iPod for $267.99 at Best Buy in Toronto. What is your total cost? Cost = $ $267.99 PST = 0.08 X $267.99 21.44 GST = 0.05 X $267.99 13.40 Total =$ 302.83 http://www.bestbuy.ca/catalog/proddetail.asp?sku_id=0926INGFS10129512&catid=21177&logo n=&langid=EN&test%5Fcookie=1

5. Discount To deduct or subtract from a cost or price. Example: A store is having a 30% off sale. The 30% is the discount.

6. Discount Example A DVD has a discount of 30%. The original cost is $24.00 What is the discounted price before taxes? How much do you save before taxes? 30% of $24.00 = d 0.30 X 24 = d $7.20 = d Discounted price $24.00 - 7.20 $16.80 before taxes You save $7.20 before taxes.

7. Commission A fee or percentage allowed to a sales representative Real Estate agents Sales people

8. Commission Example A real estate agent sells a home for $939, 000. She earns a commission of 3.5% How much does the agent earn on this sale? 3.5% of $939,000 = c 0.035 X 939,000 = c $32,865 = c The real estate agent earns $32,865.

9. Interest A charge or “rent” for a loan, usually a percentage of the amount loaned. Example: Charge Cards

10. Interest Example Ellen borrowed $8,452.52 for her tuition fees in the Engineering program at U of T. She is charged 3.5% simple interest each year. What is the amount of interest she pays/year? 3.5% of $8452.52 = m 0.035 X 8452.52 = m $295.84 = m http://www.fees.utoronto.ca/session/y07/fees/fase/Fees_-_Domestic_Students.htm

11. What do these terms have in common? These terms all involve percent and $ How do we use them?

12. Now it is time to go shopping. Be clear in setting up your answers. Use good form. Complete pp. 80-81, #2,4,7,8,10 Complete pp. 85, #4,5,6,7 Challenge #8