Tax, Tip, Discount and Commission
Math
Math notes about Tax, Tip, Discount and Commission
Okay, so we're going to talk about tax tip discount and commission. So tax and tip are things that are added so they're either out into your total to give you added to your sub total. Discounts is something that you subtract from your step total. And commission is just a stand-alone number. So tax and tip, tax, you're going to be charged pretty much everywhere you go. Tip, you add for services, discounts you can get on all kinds of things. And a commission would be something like if I got a certain percent for selling a house or selling a car or something like that. So I'm going to go through and I'm just going to come up with a couple of examples.
So let's see if my bill costs $25. At say chilies. And I want to leave 25% or sorry I want to leave 15% tip on that Bill. I take my 15% and I change it to a decimal because I can't use my 15% in the math problem unless it's a decimal. So I take .15 times $25. Okay? So then I would multiply that and that would give me. Three 75, okay? So then once I have my tax, I add it back to my original. So this equals 3075 cents. So I don't only pay three 75. Total pay. Is 25 plus the three 75, 5, 6, 7, 8, 28, 35. Now we are assuming that this price is tax including. Okay? So now let's use the same problem. $25. And say that I have a 7% tip. Our tax, I'm sorry. 7% tax. I do the same thing. I did before. .7 point 7? No, it's .07 .7 would be 70%. I almost made a big mistake. So .07 times $25.
Now, this is going to tell you how much you are going to pay in tax. If I so that's a dollar 75. If I want to know what my total bill is with 7% tax, well, 100% of 25 would be 25, okay? So I want 100% plus the 7% tax. So I can also do 1.07 and multiply it by 25. So let's just see if I'm right or if I'm completely lost my mind. I get 26, 75. And up here, I have 25 plus a dollar 75. That equals 26, 75. Okay? So there is my tax tip and now if I have a discount, I'm going to I'm going to do 20% off. My bill of $25. Okay? So I need to figure out 20% of 25.20 times $25, okay? So I do .20. -25, I changed my decimal by percent into a decimal so that gives me $5.
So I'm a discount of $5. So if I'm going to know, I can do this a couple of ways. So what I could do now is add or subtract I'm sorry, 'cause I subtract my discount from my $25, so it means my total, my new total is $20, or I pick also take my 100%, subtract my 20%, which gives me 80%, and if I take .80 times 25, I'm gonna get $20. Lastly, I have commission. And so my commission would be, say I sell a car that costs $10,000 and I get a 3.75. So 3.75% commission. So I'm gonna know if I saw that car. I'm not making all that money.
The dealership makes the money. But what do I make out of it? Again, if I have a percent, I need to change it to a decimal. And so I take my 10,000 and I multiply it by this is a decimal and move my decimal two places. .0375. And that's going to give me $375. So if I sell a car for $10,000 and I make 3.75% commission, I'm going to make $375.