How to solve sales tax math problems

how to solve sales tax math problems

6.3: Solve Sales Tax, Commission, and Discount Applications

How to calculate sales tax. To calculate sales tax of an item, simply multiply the cost of the item by the tax rate. Exercises # 1: You buy a car for 20, dollars and pay 5% in tax. How much is tax? Tax = 20, times 5% = 20, times Tax = 20, times = 1, dollars. The cost with tax is 20, + = 21, Analysis: Sales tax is the difference between the amount of the total bill and the price of the item. If we divide the sales tax by the price of the item, we get the sales tax rate. Solution: $ - $ = $ and ($) ? ($) = Answer: The sales tax rate is 4%.

Sales tax and commissions are applications of percent in our everyday lives. To solve these applications, we will follow the same strategy we used in the section on decimal operations. We show it again here for easy reference. Remember that whatever the application, once we write the sentence with the given information Step 2we can translate it to a percent equation and then solve it.

Do you pay a tax when you shop in your city or state? In many parts of the United States, sales tax is added to the purchase price of an item. The sales tax is determined by computing a percent of the purchase price. To find the sales tax multiply the purchase price by the sales tax rate. Remember to convert the sales tax rate from a percent to a decimal number. Once the sales tax is calculated, it is added to the purchase price. The result is the total cost—this is what the customer pays.

Cathy bought a bicycle in Washington, where the sales tax rate was 6. Louis, where the sales tax rate was 8. What was the sales tax rate for this purchase? Sales people often receive a commissionor percent of total sales, for their sales. Their income may be just the commission they how to look cute for middle school, or it may be their commission added to their hourly wages or salary.

The commission they earn is calculated as a certain percent of the price of each item they sell. That percent is called the rate of commission.

To find the commission on a sale, multiply the rate of commission by the total sales. Just as we did for computing sales tax, remember to first convert the rate of commission from a percent to a decimal.

Helene is a realtor. Bob is a travel agent. What rate of commission did he get? What rate of commission did she get?

Applications of discount are very common in retail settings Figure 6. When you buy an item on sale, the original price of the item has been reduced by some dollar amount. The discount rateusually given as a percent, is used to determine the amount of the discount. To determine the amount of discountwe multiply the discount rate by the original price. We summarize the discount model in the box below.

Figure 6. The sale price should always be less than the original price. In some cases, the amount of discount is a fixed dollar amount. Then we just find the sale price by subtracting the amount of discount what is an andiron used for the original price.

What was the sale price of the sunglasses? What was the sale price of the dishwasher? What was the sale price of the shoes? In Example 6. What was a the amount of discount and b the sale price of the dress? There may be times when you buy something on sale and want to know the discount rate.

The next example will show this case. Find the a amount of discount and b discount rate. Applications of mark-up are very common in retail settings.

The price a retailer pays for an item is called the wholesale price. The retailer then adds a mark-up to the wholesale price to get the list pricethe price he sells the item for. The mark-up is usually calculated as a percent of the wholesale price. The percent is called the mark-up rate. To determine the how to set u1 and u2 on d7000 of mark-up, multiply the mark-up rate by the wholesale price.

We summarize the mark-up model in the box below. Find the a amount of mark-up and b the list price of the photograph. Find the a amount of mark-up and b the list price. In the following exercises, find a the amount of discount and b the discount rate. Round to the nearest tenth of a percent if needed. What steps will you take to improve? This content is licensed under Creative Commons Attribution License v4. Skills to Develop Solve sales tax applications Solve commission applications Solve discount applications Solve mark-up applications.

Before you get started, take this readiness quiz. Solve 0. If you missed this problem, review Example 5. Solve Solve Sales Tax Applications Sales tax and commissions are applications of percent in our everyday lives. Identify what you are asked to find and choose a variable to represent it. Step 2. Write a sentence that gives the information to find it. Step 3. Translate the sentence into an equation.

Step 4. Solve the equation using good algebra techniques. Step 5. Check the answer in the problem and make sure it makes sense. Step 6. Write a complete sentence that answers the question. Definition: sales tax The sales tax is a percent of the purchase price. Solution a Identify what you are asked to find. What is the sales tax? Choose a variable to represent it. The sales tax is 6. Translate into an equation. Remember to change the percent to a decimal. What is the total cost of the how to make washer necklaces The total cost is the purchase price plus the sales tax.

Yes, because the total cost is a little more than the purchase price. Solution Identify what you are asked to find. What is the sales tax rate? What percent of the price is the sales tax? Is this answer reasonable? Yes, because 8. The how to apply immigration for australia tax rate is 8. Answer 7. Solve Commission Applications Sales people often receive a commissionor percent of total sales, for their sales.

Definition: commission A commission is a percentage of total sales as determined by the rate of commission. What is the commission? What is the rate of commission? The commission is what percent of the sale? Answer 5. Solve Discount Applications Applications of discount are very common in retail settings Figure 6. What is the sale price? The sale price is the original price minus the discount.

Solution a Before beginning, you may find it helpful to organize the information in a list. Identify what you are asked to find.

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Sales Tax Cost of sales tax = (8%)*(Cost of furniture without sales tax) Convert 8% to its decimal equivalent (divide 8% by ) 8% ? Cost of sales tax = (8%)*(Cost of furniture without sales tax) Cost of sales tax = )*(Cost of furniture without sales tax) Cost of sales tax = )*() Cost of sales tax = $ How do you solve sales tax math problems? P = the price of the object r = tax rate (converted to decimal value) T = total cost. Dec 21,  · 1. The sales tax is determined by computing a percent of the purchase price. To find the sales tax multiply the purchase price by the sales tax rate. Remember to convert the sales tax rate from a percent to a decimal number.

Example 1: Mr. How did the department store compute this amount? What amount should Mr. Smith pay? Analysis: The department store was adding sales tax to the bill. Sales tax is a tax on goods and services purchased and is normally a certain percentage added to the buyer's cost. Solution: 2. Sales tax was charged by the department store at a rate of 7. Answer: Mr. Sales tax rates vary from state to state.

Sales tax is usually the responsibility of the merchant to collect and submit to the state, and stated separately or implicitly added at the time of the sale to consumers. Let's look at some more examples of sales tax. Example 2: If the sales tax rate is 7. What is the total cost for the tape including tax? If the sales tax rate is 6. What is the total cost for the car including tax? As you can see, for small purchases, sales tax can be a nuisance; whereas for large purchases, sales tax can be a significant amount.

Let's look at an example in which the sales tax rate is unknown. Analysis: Sales tax is the difference between the amount of the total bill and the price of the item. If we divide the sales tax by the price of the item, we get the sales tax rate. Summary: Sales tax is a tax on goods and services purchased and is normally a percentage added to the buyer's cost.

Directions: Each problem below involves sales tax. Solve each problem below by entering a dollar amount with cents. Round to the nearest cent when necessary. Do not enter a comma in your answer. By signing up, you agree to receive useful information and to our privacy policy. Shop Math Games. Skip to main content. Search form Search. Exercises Directions: Each problem below involves sales tax. If the sales tax rate is 7.

If the sales tax rate is 5. What was the sales tax rate? Enter your answer as a percent. If the sales tax rate is 8. Consumer Math Lessons. Percent and Proportions. Discount and Sale Price. Simple Interest. Sales Tax. Percent Increase and Decrease. Practice Exercises.

Challenge Exercises.

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