1. Bell Work: Tax and Tip!
Your bill is $ What is your total after you leave a 20% tip and pay 5% tax?
Method 2
Multiply the price by 125% since that is what you ARE paying.
$35.50 x 125% = total cost
$35.50 x 1.25 = $44.38
Method 1
$35.50 x 20% = $7.10 (tip)
$35.50 x 5% = $1.78 (tax)
$ $ $1.78 =
$44.38
So, the total cost was $44.38.

2. Discounts
TAKE OUT A CALCULATOR

3. Discount
$31.25 toy discounted 33%

4. Calculating a Discount
Discount is calculated by multiplying the
retail price of an item by the discount percentage. METHOD 1
Example: Shoes $50
Tax Rate 25%
Discount $50 x 0.25 = $12.50
Total after discount $50 – $12.50 = $37.50

5. Calculating a Discount
Discount is calculated by multiplying the
retail price of an item by percent that you will pay.
METHOD 2
Example: Shoes $50
Tax Rate 25%
Subtract 25% from 100% since that’s what you are paying. Find 75% of $50.
= $37.50
Find total $50 x 75%
Multiply $50 x .75
Both methods give you the same answer!

6. Discount
A shirt that was $25 is on sale for 20% off. What is the sale price?
Method 2
Multiply the price by 80% since that is what you ARE paying.
$25 x 80% = total cost
$25 x .8 = $20.00
Method 1
Subtract the discount from the price:
$25 x 20% = discount
$25 x .2 = $5.00 discount
$25 - $5 = $20.00
So, the total cost was $20.00.

7. You Try!
A radio that was $120 is on sale for 15% off. What is the sale price?
Method 2
Multiply the price by 85% since that is what you ARE paying.
$120 x 85% = total cost
$120 x .85 = $102.00
Method 1
Subtract the discount from the price:
$120 x 15% = discount
$120 x .15 = $18.00 discount
$120 - $18 = $102.00
So, the total cost was $

8. Practice:
Discount worksheet