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Calculate taxes and tips

The learner understands taxes and tips as percentage increases applied to a stated base amount, such as a purchase subtotal or meal cost, and calculates the percentage amount, combined total, and possibly the original amount when the rate and final amount are known. They represent the relationships with decimal or fraction forms of percents and equations, round monetary results appropriately to cents, and distinguish the tax or tip from the total rather than treating a percent as a fixed dollar amount.

Detailed Explanation: Calculate taxes and tips

A tax or tip is a percentage of the original amount, not a fixed dollar amount.

To calculate it:

  1. Change the percent to a decimal by dividing by 100100.
  2. Multiply the original amount by the decimal.
  3. Round the tax or tip to the nearest cent.
  4. Add the original amount and the tax or tip to find the total.

Example: A meal costs 36.80.Thesalestaxis. The sales tax is 7%,andyouleavean, and you leave an 18%$ tip based on the meal cost.

Find the tax:

Convert 7%7\% to a decimal:

7%=0.077\% = 0.07

Multiply:

36.80×0.07=2.57636.80 \times 0.07 = 2.576

The tax is 2.58}$ after rounding to the nearest cent.

Find the tip:

Convert 18%18\% to a decimal:

18%=0.1818\% = 0.18

Multiply:

36.80×0.18=6.62436.80 \times 0.18 = 6.624

The tip is 6.62}$ after rounding to the nearest cent.

Find the final cost:

Add the meal cost, tax, and tip:

36.80+2.58+6.62=46.0036.80 + 2.58 + 6.62 = 46.00

The final cost is 46.00}.Thetaxis. The tax is $2.58andthetipisand the tip is$6.62$; neither percentage is itself the total.

Learn by doing: Calculate taxes and tips

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Percent change in a growing number (10% multiples) - Picture Question


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