Math 100 Class Notes
33
6.6 Percent and Problem Solving: Sales Tax, Commission and Discount
Sales Tax
Percents are frequently used in the retail trade. For example, most states charge a tax on certain
items when purchased. This tax is called a sales tax, and retail stores collect it for the state. Sales
tax is almost always stated as a percent of the purchase price.
A 5% sales tax rate on a purchase of a $10.00 item gives
sales tax = 5% of $10 = 0.05 ∙ $10.00 = $0.50
ü sales tax = tax rate ∙ purchase price
ü total price = purchase price + sales tax
Examples: Solve.
1. If the sales tax rate is 7.75%, find the
amount of sales tax due on a purchase of
$64.95. Also find the total that the customer
must pay.
2. What is the sales tax on a jacket priced at
$425 if the sales tax is 7%?
34
R. Getso
3. The purchase price of a camcorder is $974.
What is the total price if the sales tax rate is
8.5%?
4. A new plasma screen TV has a purchase
price of $4460. If the sales tax on this purchase
is $267.60, find the sales tax rate.
Commission
A wage is payment for performing work. Hourly wage, commissions, and salary are some of the
ways wages can be paid. Many people who work in sales are paid a commission.
An employee who is paid a commission is paid a percent of his or her total sales.
commission = commission rate × sales
Examples: Solve.
5. Adam is a salesperson at a furniture store
and earns a 4.5% commission on everything he
sells. Last week, he sold furniture totaling
$38,957. How much did Adam earn in
commissions last week?
7. A salesperson earned a commission of
$1076.90 for selling $9790 worth of paper
products. Find the commission rate.
6. How much commission will Jack make on
the sale of a $188,900 house if he receives 8.3%
of the selling price?
Math 100 Class Notes
35
Discount
Suppose that an item that normally sells for $40 is on sale for 25% off. This means that the
original price of $40 is reduced, or discounted, by 25% of $40, or $10. The discount rate is 25%,
the amount of discount is $10, and the sale price is $40 - $10, or $30.
ü amount of discount = discount rate ∙ original price
ü sale price = original price - amount of discount
Examples: Solve.
8. This week at Brown’s Department Store,
purses are discounted 15%. Find the sale price
of a purse that costs $46.90.
9. Complete the table.
Original Price
Discount Rate
$390
15%
Amount of Discount
Sale Price