Discount, Tax and Tip Percent Applicationsby Mrs. Fredericks

Remember Percent Problems Proportion Equation

= part = percent • whole

• Discount – an amount of money that is deducted from the regular price of an item when it is on sale.

• The discount is a part of the regular price of the item which is the whole.

= part = percent • whole = discount = percent • price

• Discount Example:Maria is buying a shirt regularly priced at $42. It is on sale for 15% off. What is the sale price of the shirt? = discount = percent • price = use the decimal form of the % x = 0.15 • 42

= x = $6.30 off

x = $6.30 off

so the shirt costs $42 – 6.30 = $35.70

• Sales tax – a state tax paid on the purchase price of an item. It varies by state and varies as to what items are taxed in a particular state.

• The tax is a part of the price of the item being purchased which is the whole.

= part = percent • whole

= tax = percent • price

• Tax ExampleMark is buying a scooter for $89.75 and he must pay 7 % sales tax. What is his final cost? = tax = percent • price = use the decimal form of the %

x = 0.0725 • 89.75 = x = $6.51 (rounded) x = $6.51 (rounded)

So the cost is $89.75 + 6.51 = $96.26

• Tip or Gratuity – an amount of money paid in return for a service, it is paid on the price of the food or service.

• The tip is part of the price paid for the item or service which is the whole.

= part = percent • whole

= tip = percent • price

• Tip exampleKaren is riding in a taxicab, her fare is $15. The ride was great so she wants to give the driver a 20% tip. What is the total cost?

= tip = percent • price Use the decimal form of the %

= x = 0.20 • 15 = x = $3.00 tip x = $3.00

So the total cost is $15 + 3 = $18

• Finding final cost calculating discount and sales tax.

Rob is buying a skateboard with a price of $119.50. It is on sale for 20 % off and he will pay 7 % sales tax. What is the final cost? Think about which calculation you should do first.

Think about what price you pay sales tax on.

• We find the discount first = discount = percent • price = use the decimal form of the % = x = 0.20 • 119.50

x = $23.50 x = $23.50 (discount is subtracted) Now find the sale price $119.50 - $23.50 = $95.60

• Find tax using the sale price = tax = percent • price = use the decimal form of the % = x = 0.07 • 95.60 x = $6.69 x = $6.69 (tax is added)

Final cost = $95.60 + 6.69 = $102.29

• Finding final cost by calculating tax and tip.

Jill is taking her friend to lunch. The meal costs $42 and she must pay 6 % sales tax. Her service was great so she wants to leave a 20 % tip. What is the final cost of the meal?

You will calculate the tip on the price of the meal.

You will calculate the tax on the price of the meal.

• We will find the sales tax first. = tax = percent • price = Use the decimal form of the %

= x = 0.06 • 42 x = $2.52 x = $2.52 (tax is added)

• We will find the tip next. (Use the same $42 price) = tip = percent • price Use the decimal form of the %

= x = 0.20 • 42 = x = $8.40 (tip is added) x = $ 8.40

• Final cost add tip, tax and price: $42 + 2.52 + 8.40 = $ 52.92