Post on 26-Dec-2015
Chapter 5 Spend Wisely
5.1 Sales Tax
Sales Tax on Purchases
• A % of price of an item or a % of all taxable items
• Sellers collect the sales tax from consumers for the government
• Sales x Price = Sales Tax
tax rate of item
• Price + Sales Tax = Total Cost of item
A. 89.99*0.045 =4.05+89.99=94.04
B. 3.5+1.8=5.3%369.89*0.053=19.06+369.89 = 389.49
Nontaxable Items
• Food, prescription drugs, labor, or services
Sales tax = Sales x Subtotal of Taxable tax rate items
Total = Subtotal + Subtotal + Sales Taxable Items Non Taxable Tax
Items
C. 309.59*.0525 =
16.25+309.59+56=
381.84
D.462.53*.0675=
31.22+462.53+225=
718.75
5.2 Sales Receipts
Sales Slips Extensions
• Sales slips show:– Number of units or quantity and description– Unit price– Extension = Unit price x Quantity of each item– Subtotal– Sales Tax– Total Sale
A. 600/100=6
6 x 8.99 =
53.94
B. 300/100 = 3
3*85.99=
257.97
Sales Slip Totals
Subtotal = Sum of extensions
Sales tax = subtotal x sales tax rate
Total of slip = subtotal + sales tax amount
C 3*3.89
5*5.79
11.67+28.95 =
40.62 * 0.0385 =
1.56 +40.62 = 42.18
D. 139.89*2=
89.99*2 =
459.76 * 0.075=
34.49+459.76=
494.24
5.3 Unit Price
Unit Price Comparison
• Price of one item or one measure of item
A. 3.29/18 = 0.18
B. 3.99/24 = 0.17
Group Pricing
C. 0.97/3 =
0.33
D. 53/5 =
10.60
5.4 Comparative Shopping
Prices at Sales, Different Stores, and in Different Amounts
• Can buy in bulk at discount stores
A. 16.29-15.67 =B. 18.25*2 =36.5-33.49=C. 1.49/53.7 =1.89/80.6 = D. 6*23.99 =3*32 =143.94-96=
Rental Options
• Can rent items you do not use often or need for short period of time
• Time periods-hourly, daily, weekly, and monthly
E. Daily 130*4=520 or 600?
F. Hourly 5*18 = 90 or
56 for 4 hours or
80 for 8 hours
Rent or Buy
• If need something on regular basis, should I buy?
• 2 steps:– Calculate annual cost of renting– Calculate how many years of renting to equal
purchase price
G. 169.99/25 = 6.8 days
H. 23.99*4 =95.96 per year to rent
349.99/95.96 = 3.6 years
5.5 Personal Internet Access
Internet Connection Costs
• ISP (Internet Service Provider) – connects home computer to internet
• Fees include:– Set-up fees– Equipment fees– Monthly access fees
• Ways to connect:– Dial-up connection– Cable connection– Digital subscriber line connection– Satellite connection
• Can have charges for:– 2nd phone line– E-mail account– Web page
• Protect computer from viruses with firewall or antivirus software
A. 39.95+5=44.95*12 = 539.40539.40+25+75+36.99 = 676.39
B. 40*24 = 960450 * 2 = 900875 for 2 years
960-875 = 85