Lesson 10Tax and Tip
Learning Goal
Let’s learn about sales tax and tips.
Learning Targets
I understand and can solve problems about sales tax and tips.
Warm Up: Notice and Wonder: The Price of Sunglasses
Problem 1
You are on vacation and want to buy a pair of sunglasses for $10 or less. You find a pair with a price tag of $10. The cashier says the total cost will be $10.45.
What do you notice? What do you wonder?
Activity 1: Shopping in Two Different Cities
Problem 1
Different cities have different sales tax rates. Here are the sales tax charges on the same items in two different cities. Complete the tables.
City 1
item | price | sales tax | total cost |
---|---|---|---|
paper towels | |||
lamp | |||
pack of gum | |||
laundry soap | |||
City 2
item | price | sales tax | total cost |
---|---|---|---|
paper towels | |||
lamp | |||
pack of gum | |||
laundry soap | |||
Activity 2: Shopping in a Third City
Problem 1
Here is the sales tax on the same items in City 3.
item | price | sales tax |
---|---|---|
paper towels | ||
lamp | ||
pack of gum | ||
laundry soap |
What is the tax rate in this city?
For the sales tax on the laundry soap, Kiran says it should be $0.84. Lin says it should be $0.87. Do you agree with either of them? Explain your reasoning.
Activity 3: Dining at a Restaurant
Problem 1
Jada has a meal in a restaurant. She adds up the prices listed on the menu for everything they ordered and gets a subtotal of $42.00.
When the check comes, it says they also need to pay $3.99 in sales tax. What percentage of the subtotal is the sales tax?
After tax, the total is $45.99. What percentage of the subtotal is the total?
They actually pay $52.99. The additional $7 is a tip for the server. What percentage of the subtotal is the tip?
Problem 2
The tax rate at this restaurant is 9.5%.
Another person’s subtotal is $24.95. How much will their sales tax be?
Some other person’s sales tax is $1.61. How much was their subtotal?
Are you ready for more?
Problem 1
Elena’s cousins went to a restaurant. The part of the entire cost of the meal that was tax and tip together was 25% of the cost of the food alone. What could the tax rate and tip rate be?
Lesson Summary
Many places have sales tax. A sales tax is an amount of money that a government agency collects on the sale of certain items. For example, a state might charge a tax on all cars purchased in the state. Often the tax rate is given as a percentage of the cost. For example, a state’s tax rate on car sales might be
Fractional percentages often arise when a state or city charges a sales tax on a purchase. For example, the sales tax in Arizona is
For example, if the price tag on a T-shirt in Arizona says
The total cost to the customer is the item price plus the sales tax. We can think of this as a percent increase. For example, in Arizona, the total cost to a customer is
A tipis an amount of money that a person gives someone who provides a service. It is customary in many restaurants to give a tip to the server that is between