Percent and Problem Solving: Percent and Problem Solving: Sales Tax, Commission, and Sales Tax, Commission, and DiscountDiscount

Section 7.5

Most states charge a tax on certain items Most states charge a tax on certain items when purchased called a when purchased called a salessales taxtax..

A 5% sales tax rate on a purchase of a A 5% sales tax rate on a purchase of a $10.00 item gives a sales tax of$10.00 item gives a sales tax of

sales tax sales tax 5% of $10 0.05 • $10.00 $0.50

Calculating Sales Tax and Calculating Sales Tax and Total PriceTotal Price

2Martin-Gay, Prealgebra, 5ed

The total price to the customer would beThe total price to the customer would be

purchase price

plus

sales tax

$10.00 $0.50 $10.50

3Martin-Gay, Prealgebra, 5ed

sales taxsales tax tax rate tax rate • purchase price purchase price

total pricetotal price purchase price purchase price sales tax sales tax

Sales Tax and Total PriceSales Tax and Total Price

4Martin-Gay, Prealgebra, 5ed

A A wagewage is payment for performing is payment for performing work.work.

An employee who is paid a An employee who is paid a commissioncommission as a wage is paid a as a wage is paid a percent of his or her total sales.percent of his or her total sales.

CommissionCommissioncommissioncommission commission rate commission rate • sales sales

Calculating CommissionsCalculating Commissions

5Martin-Gay, Prealgebra, 5ed

amount of discountamount of discount discount ratediscount rate • original priceoriginal price

sale pricesale price original priceoriginal price amount of discountamount of discount

Discount and Sale PriceDiscount and Sale Price

6Martin-Gay, Prealgebra, 5ed