1. Reminder : animation video sales tax. Show at end of lesson

2. Financial Literacy: Sales tax, Tip, and Markup

3. Sales tax - tax added onto an item when it is sold. EX1)Find the total cost of an item priced $43 with a sales tax of 8%. Step 1Change % to decimal Step 2Multiply decimal and cost 8% = 0.08 43 0.08 X = 3.44 Step 3Add product to original cost 43 + 3.44= 46.44 Round to hundredths if necessary Method 1

4. EX2)Find the total cost of an item priced $75 with a sales tax of 6.75%. 6.75% + 100% = 106.75% 75 1.0675 X = 80.0625 Step 1 Change % to decimal Step 2 Multiply decimal and cost Step 3 Round to hundredths if necessary Method 2 Add percent of tax to 100% 106.75% = 1.0675 Step 4 $80.06Total Cost =

5. Tip (gratuity)- small amount of money in return for service. Usually a percent of the cost of service. EX3)You want to leave a 15% tip on a bill of $65. How much is the tip? What is the total cost of bill? 15% = 0.15 65 0.15 X = 9.75 65 + 9.75= 74.75 EX4)A phone cost $75 with a sales tax of 8.75%. How much change would you have if you pay the bill with $85. 8.75% +100% = 108.75% 75 1.0875 X = 81.5625 85 - 81.56= $3.44 Same process to solve tax is used to solve tip.

6. Markup - percent of increase A store buys shoes from a manufacturer for $25. The markup is 30%. What is the selling price? Step 1 Add the markup to the store cost Step 2 Find % of markup 25 X 43% = 25 X 0.43 = 10.75 25 + 10.75 = $35.75

7. Assignment Page 271 Problems 2-10 evens, 17

8. Notes

9. Financial Literacy: Sales tax, Tip, and Markup Date _____________

10. Sales tax - tax added onto an item when it is sold. EX1)Find the total cost of an item priced ____with a sales tax of ___. Step 1Change % to _______ Step 2Multiply decimal and ______ Step 3Add _________ to ___________ cost Round to hundredths if necessary Method 1

11. EX2)Find the total cost of an item priced ______with a sales tax of _________. Step 1 Change % to decimal Step 2 Multiply decimal and cost Step 3 Round to hundredths if necessary Method 2 Add ______ of tax to _______ Step 4

12. Tip (gratuity)- small amount of money in return for service. Usually a percent of the cost of service. EX3)You want to leave a _____ tip on a bill of _____. How much is the tip? What is the total cost of bill? EX4)A phone cost _____with a sales tax of ________. How much change would you have if you pay the bill with ______. Same process to solve tax is used to solve tip.

13. Markup - percent of increase A store buys shoes from a manufacturer for _____. The markup is ____. What is the selling price? Step 1 _____ the markup to the store cost Step 2 Find ______________