1. Sales tax and tips
Sec 6.3C pg

2. Sales Tax
Sales tax is an additional amount of money charged on items that people buy. The total cost of the item is the regular price plus the sales tax.
Sales tax in Autauga County/Prattville is 9.5%
A blu-ray player cost $119. What is the total cost?
Method 1 – Add sales tax to the regular price.
9.5% as a decimal is
9.5% of $119 is • $119
or $11.31
$119 + $11.31 = $130.31

3. Sales tax – Method 2 Add the sales tax to 100%
If you multiplied by 100% it would be like multiplying by 1 since 100% = 1.00
100% + 9.5% = 109.5%
Total Cost = 109.5% of Regular Price
Total Cost = • $119
Total Cost = $ or $130.31

4. Tip or Gratuity
A tip of gratuity is a small amount of money in return for a service. The total price is the regular price of the service plus the tip.
Chasity eats at Midtown Pizza Kitchen and received excellent service. She wants to tip 20% on her bill of $17.
Method 1 – Add the tip to the regular price.
First, find the tip.
20% of $17 = 0.20 • $17
$3.40
$ $17 = $20.40

5. Tip – Method 2 Add the tip amount to 100%
If you multiplied by 100% it would be like multiplying by 1 since 100% = 1.00
20% added to 100% = 120%
Now multiply the bill by 120%
$17 • 120% = $17 • 1.20
$20.40

6. Practice
Gavin buys a new video game for $54. How much is the total cost if the tax is 9.5%
Method 1 – Calculate the tax and add to the price
9.5% = 0.095
0.095 • $54
$5.13
Total Cost = Original price + tax
$54 + $5.13
$59.13
Method 2 – Add the tax to 100%
100% + 9.5%
109.5%
109.5% = 1.095
Original price • 1.095
$54 • 1.095
$59.13

7. Practice - Tip
Alyssa ate at Kimberlia’s. Her bill was $78 and she wanted to tip 15%.
Method 1 – Calculate the tip and add to the original cost.
15% = 0.15
$78 • 0.15
$11.70
Total Cost = Original Cost + Tip
Total Cost = $78 + $11.70
Total Cost = $89.70
Method 2 – Add the tip to 100%
100% + 15% = = 1.15
Total Cost = Original Cost • 1.15
Total Cost = $78 • 1.15
Total Cost = $89.70