# 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:

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