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 $200.

### 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

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

One of your answers is wrong I believe, the dress was originally $200, not $20.