Discount, Tax and Tip

Discount, Tax and Tip

Learn how to use percent formula to solve Discount, Tax and Tip problems in few simple and easy steps.

Step by step guide to solve Discount, Tax and Tip problems

  • Discount \(=\) Multiply the regular price by the rate of discount
  • Selling price \(=\) original price \(–\) discount
  • Tax: To find tax, multiply the tax rate to the taxable amount (income, property value, etc.)
  • Tip: To find tip, multiply the rate to the selling price.

Example 1:

With a \(20\%\) discount, Ella was able to save \($40\) on a dress. What was the original price of the dress?

Solution:

\(20\%\) of \(x= 40, \frac{20}{100} \ × \ x=40, x=\frac{100 \ × \ 40}{ 20}=200 \)

The original price of the dress was $20.

Example 2:

Sophia purchased a sofa for \($340.00\). The sofa is regularly priced at \($400.00\). What was the percent discount Sophia received on the sofa?

Solution:

Use this formula: percent \(=\) Part \(÷\) base \(=340 \ ÷ \ 400=0.85=85\%\)
Therefore, the discount is: \(100\% \ – \ 85\%=15\%\)

Example 3:

Ella and her friends went out to eat at a restaurant. If their bill was $60.00 and they gave their server a 15% tip, how much did they pay altogether?

Solution:

The tip was 15%. Then: \(15\%\) of \(60\%\) = \(9\)

The final amount they paid: $60.00 + $9.00 = $69.00

Example 4:

The selling price of a table is $400 and the tax rate is 6%. What is the final price of the table?

Solution:

Find tax amount: \(6\%\) of \(400\%\) = \(24\)

The final price of the table is: $400 + $24 = $424

Exercises

Find the selling price of each item.

  • Original price of a computer: \($200\)
    Tax: \(10\%\), Selling price:
  • Original price of a computer: \($400\)
    Tax: \(5\%\), Selling price:
  • Original price of a computer: \($500\)
    Tax: \(8\%\), Selling price:
  • Original price of a computer: \($800\)
    Tax: \(25\%\), Selling price:
  • Original price of a computer: \($250\)
    Tax: \(10\%\), Selling price:
  • Original price of a computer: \($1,500\)
    Tax: \(15\%\), Selling price:

Download Discount, Tax and Tip Worksheet

Answers

  • \(\color{blue}{$220.00}\)
  • \(\color{blue}{$420.00}\)
  • \(\color{blue}{$540.00}\)
  • \(\color{blue}{$1,000.00}\)
  • \(\color{blue}{$275.00}\)
  • \(\color{blue}{$1,725}\)

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