1. 2 Sales tax is calculated by finding the percent of the total purchase.

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Presentation transcript:

1

2 Sales tax is calculated by finding the percent of the total purchase.

3 To find the amount of sales tax on a purchase, you multiply the tax rate by the sum of the prices of the items purchased.

4 You will first need to change the amount of tax from percent to the decimal equivalent.

5 When changing the tax rate from a percent to a decimal, first change the percent to a fraction with a denominator of % == 0.06

6 6 % = Find the amount of tax on a purchase of $25.99 if the tax rate is 6 %. = 0.06

7 6 % == Using a calculator multiply $25.99 times 0.06 by entering the following into the calculator: X 0.06 =

X 0.06 = Use the calculator to round to the hundredths place by using the Fix function key.

9 The Fix function key selects the calculator’s rounding function and the 2 key tells the calculator how many decimal places to round the number in the calculator display.

10 With the in the calculator display press the Fix key and the 2 key rounds to 1.56

11 To find the total amount of your purchase including tax, add the total amount of the items to be purchased to the calculated tax rate. $ =$27.55

12 If the number displayed in the calculator is ever less than 2 decimal places in a money amount, use the Fix function key to display the number with 2 decimal places. $159.9 =$159.90

13 To find sales tax: price X tax rate = Sales Tax $8.55 X 0.05 = $0.43 To find total cost: price + sales tax = Total Cost $ $0.43 = $8.98

14 If the tax rate contains a decimal or a fraction, change the tax rate to a complex fraction and then to the equivalent decimal. 5.8 % == 0.058

15 If the tax rate contains a decimal or a fraction, change the tax rate to a complex fraction and then to the equivalent decimal. % == =