Tax and Tips
Part of the Decimals, Percents & Ratios section of Coddy's Pre-Algebra journey. Lesson 30 of 53.
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: . The multiplication goes first, so the tip is worked out before it is added, and the next line is . 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.
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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All lessons in Decimals, Percents & Ratios
4Dividing Decimals
Dividing by a DecimalDividing by 10 and 100Dividing by a Whole NumberUnit PriceRecap: Dividing7Percent Problems
Finding the WholeDiscountsTax and TipsPercent IncreasePercent DecreaseRecap: Percent Problems