Sales Tax and Discounts Or How come my $15 CD costs $15.75
Sales Tax and Discounts <ul><li>Schools </li></ul><ul><li>Roads </li></ul><ul><li>Police </li></ul><ul><li>Fire and Rescue...
Sales Tax and Discounts <ul><li>The sales tax in Virginia is currently 5% </li></ul><ul><li>4% goes to the State </li></ul...
Sales tax and discounts What does this mean for me? The true cost of an item isn’t what you see on the tag!  You must figu...
Sales Tax and Discounts This pocketbook is sold at WalMart for $12.96 What is the sales tax at 5% What is 5% of $12.96 $0....
Sales Tax and Discounts A couple of ways to think about this problem You are paying 105% of the cost…..100% represents the...
Sales Tax and Discounts A second way is to find 5% of $12.96 .05 X $12.96 = $0.65 Then add the tax to the cost of the item...
Sales Tax and discounts <ul><li>An IPOD Nano for $179 </li></ul><ul><li>A bicycle for $219 </li></ul><ul><li>A sweatshirt ...
Sales Tax and Discounts Augusta County imposes a 4% meals and lodging tax.  This is on top of the 5% state sales tax.  You...
Sales Tax and Discounts Sometimes items are put on sale…..a discount is applied. Suppose the $12.96 pocketbook goes on sal...
We can solve this type problem the same way we solve sales tax problems A 15% discount means you are only paying 85% of th...
You can also find 15% of the original price and subtract that amount from the original price. What is 15% of $12.96 0.15 X...
Discounts Use percent of Change formula to find the discount! A 31% discount The pocketbook that originally sold for $12.9...
Sales Tax and Discounts Doggy Raincoat origanally priced at $13.99 now on sale for $9.99 What is the discount? A 29% disco...
Dinner Out Going to Red Lobster: Bill:  $42.50 Tip:  _______ Tax  _______  Sales tax and meals tax 9% Total Cost of my mea...
Classwork Page 61 in your workbook
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Sales tax and_discounts

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Sales tax and_discounts

  1. 1. Sales Tax and Discounts Or How come my $15 CD costs $15.75
  2. 2. Sales Tax and Discounts <ul><li>Schools </li></ul><ul><li>Roads </li></ul><ul><li>Police </li></ul><ul><li>Fire and Rescue </li></ul><ul><li>Libraries </li></ul><ul><li>Parks and Recreation </li></ul><ul><li>Defense </li></ul><ul><li>The government (Federal, State and Local) provides many services…..many of these services are paid for through taxes. </li></ul>
  3. 3. Sales Tax and Discounts <ul><li>The sales tax in Virginia is currently 5% </li></ul><ul><li>4% goes to the State </li></ul><ul><li>1% goes to localities </li></ul><ul><li>There is a separate food tax of 3% - 2% for the state and 1% for the locality. </li></ul><ul><li>All of Virginia’s 76 cities and 37 counties impose a meals tax. The median rate is 4 percent </li></ul><ul><li>32 cities and counties tax cigarette sales </li></ul>
  4. 4. Sales tax and discounts What does this mean for me? The true cost of an item isn’t what you see on the tag! You must figure in the Sales Tax. Your trip to Wally-World is more than the cost of each item you buy….
  5. 5. Sales Tax and Discounts This pocketbook is sold at WalMart for $12.96 What is the sales tax at 5% What is 5% of $12.96 $0.65 will be added to the cost for a total cost of $13.61
  6. 6. Sales Tax and Discounts A couple of ways to think about this problem You are paying 105% of the cost…..100% represents the cost of the pocketbook and you pay an additional 5% to cover sales tax What is 105% of $12.96 OR 1.05 X $12.96
  7. 7. Sales Tax and Discounts A second way is to find 5% of $12.96 .05 X $12.96 = $0.65 Then add the tax to the cost of the item $12.96 + $0.65 = $13.61
  8. 8. Sales Tax and discounts <ul><li>An IPOD Nano for $179 </li></ul><ul><li>A bicycle for $219 </li></ul><ul><li>A sweatshirt for $15.99 </li></ul><ul><li>A CD for $13.50 </li></ul><ul><li>A watch for $39.99 </li></ul><ul><li>$187.95 </li></ul><ul><li>$229.95 </li></ul><ul><li>$16.79 </li></ul><ul><li>$14.18 </li></ul><ul><li>$41.99 </li></ul>Find the total cost with a 5% sales tax
  9. 9. Sales Tax and Discounts Augusta County imposes a 4% meals and lodging tax. This is on top of the 5% state sales tax. You pay an additional 9% to eat in a restaurant in Augusta County. Your bill at Don Juans is $32.50…..what is your total with tax? $35.43
  10. 10. Sales Tax and Discounts Sometimes items are put on sale…..a discount is applied. Suppose the $12.96 pocketbook goes on sale for 15% off……
  11. 11. We can solve this type problem the same way we solve sales tax problems A 15% discount means you are only paying 85% of the original price….. 0.85 X $12.96 = $11.02
  12. 12. You can also find 15% of the original price and subtract that amount from the original price. What is 15% of $12.96 0.15 X $12.96 = $1.94 $12.96 - $1.94 = $11.02
  13. 13. Discounts Use percent of Change formula to find the discount! A 31% discount The pocketbook that originally sold for $12.96 is now on sale for $9.00 – What percent discount is that? A different approach!
  14. 14. Sales Tax and Discounts Doggy Raincoat origanally priced at $13.99 now on sale for $9.99 What is the discount? A 29% discount!!!!!! What will my $9.99 doggy raincoat cost after adding 5% sales tax? $10.49
  15. 15. Dinner Out Going to Red Lobster: Bill: $42.50 Tip: _______ Tax _______ Sales tax and meals tax 9% Total Cost of my meal __________ 6.38 3.83 $52.71
  16. 16. Classwork Page 61 in your workbook

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