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Tax and Tips

Part of the Decimals, Percents & Ratios section of Coddy's Pre-Algebra journey. Lesson 33 of 56.

A discount takes a percent away. A tax or a tip adds one. A meal costs 50 dollars and you leave a 20% tip. The tip is 20% of 50, which is 10 dollars, so you pay 50 + 10, which is 60 dollars.

On the board, one line holds it all: t = 50 + 20% × 50. The multiplication goes first, so the tip is worked out before it is added, and the next line is t = 60. Sales tax works the same way: 8% tax on a 25 dollar book is 2 dollars, so the total is 27.

A quick check: the total must be more than the price, but not by much when the percent is small. A 20% tip adds a fifth of the bill, so a total about 20% bigger is right, and a total that doubled is not.

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Challenge

A dinner costs 40 dollars, and you leave a 15% tip. Find the total t you pay. Write t equal to the calculation, then work it out.

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This lesson includes a short quiz. Start the lesson to answer it and track your progress.

quiz iconTest yourself

This lesson includes a short quiz. Start the lesson to answer it and track your progress.

All lessons in Decimals, Percents & Ratios