Math 6 High ( Period 3)

Discount & Sales Tax 7.7

Let’s go shopping!
A reduction in the price of an item is called a discount. Discounts are often calculated using percent of the original price.
To find the price of an item that is discounted:

1) find the amount of the discount

2) subtract the discount from the original price.

You buy a pair of hiking shoes. The original price of $65 is discounted by 35%. What is the sales price?

Solution:
Find the amount of the discount

Discount = 35% of $65

Discount = 65 ( .35)
=22.75

$22.75 is what you will SAVE!! It isn’t what you will pay to purchase them so

Remember

Sales price = Original price – discount
65- 22.75 = 42.25

$42.25

Which television’s sale price is less expensive? Let’s assume they are the same quality
Television A: Discount of 25% off the original price of $575
Television B: Discount of 30% off the original price of $585.

Television A:  Sales price = 575 – (0.25 · 575)
                        575 -143.75
                        431.75

Television B: Sales price = 585 –(0.30 · 585)
                        585- 175.5
                        409.50

Television B’s sales price of $409.50 is less expensive.

Finding Sales Tax

A sales tax is an amount added to the price of a purchased item. Sales tax is often calculated using a percent of the price.
To find the total price of an item including sales tax:

1) Find the amount of the sales tax

2) Add the sales tax to the price.

Example:
You buy an ipod shuffle. The price is $40.00 and the sales tax is 8.25% What is the total price you will pay?

Solution:
Find the amount of the sales tax.

Sales tax       = 8.25% of 40
                        =0.0825(40)
                        = 3.3

Which means the sales tax is $3.30

Add the sales tax to the price

Total price     = Purchase Price + Sales Tax
                        = $40 + $3.30 = $43.30

You will pay $43.30.

                       
Finding a Total Price

Shirts in a store are on sale for 30% off. The sales tax is 7.25%.  What is the total price of a shirt that has an original price of $29.95?

Solution: First find the discount and  the sale price.
Then find the sales tax and add that to the sale price to find the total price.
Careful—lots of steps here!

Finding the discount and the sales price.

Discount         = 30% of 29.95
                        = 0.3(29.95)
                        = 8.99
Sale Price     = Original Price – Discount
                        = 29.95 – 8.99 = 20.96

Sale Price is $20.96

That is the amount you calculate your sales tax upon so

Finding the Sales tax and the Total Price

Sales tax       = 7.25% of 20.96

                        = 0.0725(20.96)=1.52

Total Price     =  Sale Price + Sales Tax
                        = 20.96 + 1.52 = 22.48

The total price including sales tax is $22.48