sales tax and tips

Some of the most common uses of percent occur with taxes and tips.

Sales tax is usually around 6 or 7%, while a fair tip is around 15%.

To find the sales tax of an item, first change the sales tax to either a decimal or fraction. This is a matter of preference. Multiply your decimal or fraction by the price to get the amount of sales tax. Add your sales tax to the price of the item(s) to get the total amount you have to pay.

Example: Shawn buys his dad a new TV-VCR for his anniversary. He sees it advertised for $200. What will Shawn actually pay to purchase the TV-VCR? The sales tax is 7%.

7% = .07 or 7/100

(change the tax to a decimal or fraction)

$200 x .07 = $14.00

or $200 x 7/100 = $1400/100 = $14

Therefore, Shawn will have to pay

$200 + $14 = $214.

Matt and Michelle enjoy a romantic evening at The Golden Lamp. The waiter has done an excellent job, and they want to leave him a nice tip of 15%.

As generous restaurant patrons, they will tip the waiter after the tax of 7% is calculated.

What amount will Matt put on his credit card for the total bill, plus tax and tip?

mC	writer:Kevin Gallagher

Percent