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 %.



Given the price of an item or items, to find the sales tax, 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 just under $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.



As generous restaurant connoisseurs, we will tip the waiter or waitress after the tax is calculated.

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%

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

$

 

percent of increase and decrease | main | simple interest

 

  writer:Kevin Gallagher