Lockport City School District / Overview



Name: ____________________________________________________ Period: _____Packet 9: Discounts and Sales TaxWhat is a discount? ________________________________________________________________________________________________________________________________________________There are 2 methods to calculate discount for an item. Use whatever method you like best.Method 1Method 2Item Amount x Discount Rate = Discount AmountItem Amount – Discount Amount = Sale PriceItem Amount x (100% - Discount Rate) = Sale PriceUse both methods to calculate the sale price of an item that costs $140 and has a discount of 40%.Benefits of MethodBenefits of MethodThe original price of a shirt is $18. The shirt is on sale for a 20% discount. What is the sale price of the shirt?In a department store, a $40 dress is marked, "Save 25%." What is the discount? What is the sale price of the dress?In a grocery store, a $12 case of soda is labeled, "Get a 20% discount." What is the discount? What is the sale price of the case of soda?In a candy store, a $5.00 jar of candy is labeled, "50% off." What is the discount? What is the sale price of the jar of candy?In a bicycle store, a $500 bicycle is marked, "Get a 30% discount." What is the sale price of the bicycle?At best buy they have a 42” TV that sells for $1250 and is on sale for 15%. What is the sale price?Given the Sale Price and Discount Rate, find the Original Price.A tennis racket is on sale for $70. It was discounted 10%. What was the original price of the item?Given the Sale Price and the Original Price, find the Discount Rate.My sneakers cost $80. They were on sale for $32. What was the discount rate?Original PriceDiscount RateWork SpaceSale Price1.$21239%2.$81213%3.49%$ 56.614.19%$ 235.715.$315$ 223.656.$831$ 631.56Series of DiscountsSometimes businesses are rewarded with additional discounts. For example, Suzi’s Muffins may receive an initial discount of 25% automatically. Then, gets an additional 20% if its accumulated purchases were between $10,000 and $25,000 the previous year and another 10% if accumulated purchases were more than $25,000 during the previous year. Therefore Suzi’s Muffins could have discounts of 25%, 20%, and 10%, called a series of discounts.Example 1Federated Food Supply sells a set of mixing bowls for a list price of $480. Suzi’s Muffins qualifies for the series of discounts: 25%, 20%, 10%. Calculate the net price using the discount plement Method ShortcutWhen using the complement rates, you can just multiply the list price by all of the complement rates to calculate the net price. Try it for Example 1.Example 2Jack Hackett Roofing is purchasing redwood shakes to reroof a house. The shakes have a list price of $14,400. The Northwest Roofing Company jives Jack the normal trade discount of 20%. In addition, Northwest gives Jack two further trade discounts of 10% and 5% because of the large volume of business that Jack has done with Northwest so far this year. What is Jack’s net price on the order of redwood shakes?Calculating the Equivalent Single Discount RateHow would you compare a company that offers a straight 45% discount to a company that offers a discount series of 25%, 20%, 10%? Let’s say, something costs $100. Calculate the net cost using both types of discounts.Steps to Computing the Equivalent Single Discount RateExample: 25%, 20%, 10%Calculate the complement of each rate.Multiply the complement rates and write as a percent.Subtract the product (percent) from 100% to get the equivalent single discount rate.Example 1:A series of discounts is 40%, 20%, and 5%. Find the equivalent single discount.Practice the following by finding the equivalent single discount rate. Round to the nearest tenth of a percent.30%, 20%, 5%20%, 10%, 5%Find the complement rates and the net price using the Equivalent single Discount Rate:3. List Price: $1,200 Trade Discounts: 50%, 40%, 10%4. List Price: $7,400 Trade Discounts: 15%, 10%, 3%5. List Price: $8,480 Trade Discounts: 25%, 12%, 4%What is Sales Tax?What is sales tax?____________________________________________________________________________________________________________________________________________________________________________________Where does sales tax go? ____________________________________________________________________________________________________________________________________________________________________________________What items are taxed?TaxedExempt from TaxesAdding Tax to ItemsWhen you purchase items, a sales tax is added to the price of the item. In Niagara County, they add an ________% sales tax.Steps to figuring out Sales Tax and Total Cost of an item costing: $________1. Change the percent to a decimal._________% = __________2. Multiply the decimal by the cost of the item. This is the tax.( _______ ) ( _______ ) = __________3. Add the tax to the cost of the item._________ + ________ = __________Example 1: Your bill comes to $32.46. Calculate the sales tax and the total bill with tax. DirectionsUse the worksheet below to help you determine what you can buy with $100. Calculate all sales taxes and add them to the cost. Add up all of the total costs of the items. You must purchase five items (no more and no less). Whoever is closest to $100 without going over will win a special prize.ItemSelling PriceTaxTotal CostEx. Blue Shirt$8.99(8.99)(.08) = 0.728.99 + 0.72 = $9.71 Total Cost:Sales Tax and Discount Word ProblemsSeveral taxable items are sold at a retail price of $21.50. The sales tax rate is 8%. What is the total amount of tax and the total amount to be paid?A table was purchased for $70.00 less a 5% trade discount. The sales tax rate was 8%. How much was paid for the table?Rico Carty lives in a state having a sales tax rate of 8%. Carty crossed the state line into a state having a sales tax rate of 3% to make a purchase in the amount of $5,743. Compute the amount Carty saved in sales tax by purchasing in the neighboring state.A customer bought the following items:Milk $2.49Orange Juice $2.89Soap $4.75 The tax rate is 8%. What was the total cost?Alfredo Griffin lives in a state having a sales tax of 6%. Griffin crossed the state line into a state having a 3% tax rate to make a purchase in the amount of $562. If transportation to the next state cost Griffin $20, compute the gain/loss by purchasing in another state.Tony Fernandez planned to purchase furniture costing $29,900. The sales tax in Fernandez’s home state was 8%. The sales tax in a neighboring state was 3%. Delivery charge from the neighboring state would be $1,000. Compute the gain/loss by purchasing furniture from the neighboring state. ................
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