Sales Tax and Discount

Lesson 8-5

Sales tax and discount

• Sales tax - is an additional amount of money charged on items people buy. The total cost is the regular price plus the sales tax.

• Discount – the amount by which the regular price of an item is reduced. The sale price is the regular price minus the discount.

Sales Tax

• The local, state, or federal government receives this money.

• For example if:

• Louisiana State sales tax is 4%

• Vermilion Parish sales tax is 4.5%

• Total rate of tax is 8.5%

Sales Tax: Finding the total cost.

• A pair of shoes cost $90, and the sales tax is 4.25%. What is the total cost of the shoes?

• First find the amount of sales tax.

4.25% of 90 =

4.25% x 90

$3.83 (This is the amount of tax being charged on the sale. So to find the total cost we add the tax to the original price.)

Sales Tax: Finding the total cost.

Add the sales tax to the original price.

90 + 3.83 =

$93.83 is the total cost of the shoes.

Sales Tax• A set of golf balls sells for $20, and the

sales tax is 5.75%. What is the total cost?

• 5.75% of 20

• 5.75% x 20 =

• $1.15

• $20 + $1.15 =

• $21.15

Add the sales tax to the original price.

Sales Tax

• Your Turn:

• A video game system cost $130 and the sales tax is 6.5%. What is the total cost of the video game system?

The total cost = $138.45

Discount: Finding the sale price.

• Alan wants to buy a bike that has a regular price of $169. This week the bike is on sale at a 35% discount. What is the sale price of the bike?

• 35% of 169

• 35% x 169 =

• The discount is $59.15

Discount: Finding the sale price.

• Subtract the discount from the original price.

• $169 - $59.15 =

• The sale price is $109.85

Discount

• Your Turn:

• Whitney wants to buy a new coat that has a regular price of $185. This weekend, the coat is on sale at 33% off. What is the sale price of the coat?

• $123.95

Find the Percent of the Discount

• An electric guitar is on sale. What is the percent of the discount?

• First find the amount of thediscount.$299.95 - $179.99 =$119.96

$119.96 is what percent of $299.95

Original Price

$299.95

Sale Price

$179.99

This is the amount you save.

Find the Percent of the Discount

• $119.96 is what percent of $299.95

119.96

299.95

p

100=

p = 39.99

Round to the nearest whole number.

p = 40 The discount is 40%

Find the percent of discount

• Your Turn:

• A sports watch has an original price of $86. The sale price is $60.20. What is the percent of discount?

• 30%