Sales Tax and Discount Calculations

Sales Tax Calculation

• Finding the sales tax on an item involves a few straightforward steps.
  • Step 1: Convert the sales tax percentage to a decimal.
    • For instance, to convert 5%, divide by 100 to obtain 0.05.
  • Step 2: Multiply the decimal by the cost of the item.
    • For example, for an item costing $10 at 5% tax:
    • Calculation:
      $10 imes 0.05 = 0.50$
    • Here, $0.50 represents the sales tax amount.
  • Step 3: Add the sales tax to the original price to get the total cost.
    • Total Cost Calculation:
      $10 + 0.50 = 10.50$
    • Therefore, the total cost of the item with sales tax included is $10.50.

Discount Calculation

• To calculate the sale price of an item that has a percentage off the original price, follow these detailed steps:
  • Step 1: Convert the discount percentage to a decimal.
    • Example: A 20% discount converts to 0.20.
  • Step 2: Multiply the decimal by the original cost of the item to find the discount amount.
    • For an item originally priced at $50:
    • Calculation:
      $50 imes 0.20 = 10$
    • This means the discount amount is $10.
  • Step 3: Subtract the discount amount from the original price to obtain the sale price.
    • Sale Price Calculation:
      $50 - 10 = 40$
    • Thus, the new sale price of the item after applying the discount would be $40.