Discount, Tax and Tip

-  To find the discount: Multiply the regular price by the rate of discount
-  To find the selling price: Original price – discount
-  To find tax: Multiply the tax rate to the taxable amount (income, property value, etc.)
-  To find the tip, multiply the rate to the selling price.

Examples:
Example 1.  With an discount, Ella saved on a dress. What was the original price of the dress?
Solution: let be the original price of the dress. Then: . Write an equation and solve for : . The original price of the dress was $250.

Example 2.  Sophia purchased a new computer for a price of $820 at the Apple Store. What is the total amount her credit card is charged if the sales tax is 5%?
Solution: The taxable amount is $820, and the tax rate is 5%. Then:



Example 3.  Nicole and her friends went out to eat at a restaurant. If their bill was $60.00 and they gave their server a 15% tip, how much did they pay altogether?
Solution: First, find the tip. To find the tip, multiply the rate to the bill amount. . The final price is: