PIA Lecture Notes 6 PDF

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Applications of Sales Tax, Commission, Discount, Markup, and Percent Increase and Decrease Applications Involving Sales Tax Definition: Sales tax is a tax based on a percent of the cost of merchandise. Sales Tax Formula

 Amount of   Tax   Cost of   sale tax   rate   merchandise       1.

Complete the table.

a.

Cost of Item $45

b. c.

$21.50

d.

$72

Sales Tax Rate 7% 4%

Amoun t of Tax

Total Cost

$1.29 $6.20 $79.92

Section 6.7

2.

A refurbished desk top computer sells for $283. If the tax rate is 6%, what is the total bill?

3.

Axel booked a trip to Cancun for $783. The total cost, after tax, for the transaction was $829.98. a)

How much was the sale tax?

b)

What is the sale tax rate?

Applications Involving Commissions Definition:

Commission is a form of income based on a percent of sales. Commission Formula

 Amount of   Commission    rate  commission  

  Total       Sales 

4.

A salesperson at a car dealership sold a car for $18,000. If she received $1260 in commission, what was her commission rate?

5.

John works in an insurance office. He makes a weekly salary of $180 plus a 5% commission on insurance policy sales. His salary last week was $642. What were his sales that week?

Applications Involving Discount and Markup Discount Formulas

 Amount of   Discount  discount   rate   

  Original    Pr ice    

Sale Price = Original Price – Amount of discount

Markup Formulas

 Amount of   Markup  Original        markup   rate   Pr ice  Retail Price = Original price + Amount of markup

6.

A tablet is on sale for $399.20. If the regular price is $499, what is the discount rate?

7.

An importer marks up the price of a $370 refrigerator by 45%. What is the retail price of the refrigerator?

Applications Involving Percent Increase and Decrease When we compute percent increase or percent decrease, we are comparing the change between two given amounts to the original amount. The change (amount of increase or decrease) is found by subtraction. Percent Increase or Percent Decrease

 Percent   Amount of increase   increase   Original amount  100%      Percent   Amount of decrease      100%  decrease   Original amount  8.

The attendance at the Mercedes Benz run in Fort Lauderdale, Florida increased from 5,246 participants in 2012 to 6,820 in 2013. Determine the percent increase. Round to nearest percent.

9.

Nelson enjoys eating ice-cream. He has recently noticed a decrease in the size of the container he always buys from 1.6 quarts to 1.35 quarts. What was the percent decrease in the ice-cream container?

10. Jasmine bought a house in 2005 for $250,000. After the economic bubble of 2007 Jasmine’s house was appraised at $170,000. What is the percent decrease in the value of Jasmine’s house?

Summary of Formulas for Sales Tax, Commission, Discount, and Markup Amount = Rate Original amount

Sales tax:

 Amount of   Tax   Cost of         sale tax   rate   merchandise

 Amount of   Commission    commission   rate  Commission:

  Total      Sales 

Discount:

 Amount of   Discount  discount   rate   

  Original   Pr ice    

Markup:

 Amount of   Markup  Original        markup   rate   Pr ice ...