1. Percent and Problem Solving: Sales Tax, Commission, and Discount
Chapter 1 / Whole Numbers and Introduction to Algebra
Section 7.5
Percent and Problem Solving: Sales Tax, Commission, and Discount

2. Chapter 1 / Whole Numbers and Introduction to Algebra
Calculating Sales Tax and Total Price
Most states charge a tax on certain items when purchased called a sales tax.
A 5% sales tax rate on a purchase of a $10.00 item gives a sales tax of
sales tax = 5% of $10 = 0.05 • $10.00 = $0.50
Martin-Gay, Prealgebra, 5ed

3. Chapter 1 / Whole Numbers and Introduction to Algebra
The total price to the customer would be
purchase price
sales tax
plus
$10.00 +
$0.50 =
$10.50
Martin-Gay, Prealgebra, 5ed

4. Chapter 1 / Whole Numbers and Introduction to Algebra
Sales Tax and Total Price
sales tax = tax rate • purchase price
total price = purchase price + sales tax
Martin-Gay, Prealgebra, 5ed

5. Chapter 1 / Whole Numbers and Introduction to Algebra
Calculating Commissions
A wage is payment for performing work.
An employee who is paid a commission as a wage is paid a percent of his or her total sales.
Commission
commission = commission rate • sales
Martin-Gay, Prealgebra, 5ed

6. Chapter 1 / Whole Numbers and Introduction to Algebra
Discount and Sale Price
amount of discount = discount rate • original price
sale price = original price - amount of discount
Martin-Gay, Prealgebra, 5ed