Intermediate Test Prep Math 8 (Grades7-8) Sales Tax

To find sales tax on an item we must first know the tax rate. In different states, counties, and/ or cities we find different tax rates. Most often we see 6%, 7%, or 8% in examples.

We must first change the percent to a decimal. (Move the decimal point 2 places to the left and drop the percent sign.)

                             Then multiply the decimal number by the price of the item.
                             We multiply because it is that percent of every dollar you
                             spend.

Example 1:

Question	Solution
Joe purchased a sweater for $21.95. The tax rate was 7%. What was the total purchase price?	First change 7% to 0.07 Then multiply $21.95 by 0.07
	$21.95 x 0.07 = $1.5365
	Since we know money only consists of two places to the right of the decimal we must round. The tax on the sweater would then be $1.54 Lastly we would add $21.95 and $1.54
	$21.95 + $1.54 = $23.49

Example 2:

Question	Solution
Mary's dinner consisted of a cheeseburger and fries for $5.25, a soda for $0.95, and an ice cream sundae for $2.79. The tax rate was 8%. How much was her total bill?	We must first add all the items together.
	$5.25 + $0.95 + $2.79 = $8.99
	Change 8% to 0.08 Multiply $8.99 by 0.08
	$8.99 x 0.08 = $0.7192
	Again we must round to 2 places to the right of the decimal. The tax for Mary's dinner would be $0.72 We would then add the tax to the food total.
	$8.99 + $0.72 = $9.71

We would follow the same procedure in a situation in which we would have to tip a waiter or waitress. This is called gratuity.

Example 3:

Question	Solution
Beth paid $27.56 for a restaurant bill and gave a 15% tip. How much was the tip?	First change 15% to 0.15 Then multiply $27.56 by 0.15
	$27.56 x 0.15 = $4.134
	We would then round to $4.13
	Beth gave $4.13 for a tip.

Remember:

Change the tax rate or gratuity rate to a decimal number and multiply by the total price.

Also remember to round the tax or tip to two decimal places.