Sales tax is added to a price: a $120 jacket with 10% tax costs 120 + 12 = $132. A discount takes money off: 25% off $210 is 210 − 52.50 = $157.50.
Simple interest is money earned on savings each year, worked out on the starting amount only. Interest = amount × rate × years. $1400 at 6% for 3 years earns 1400 × 0.06 × 3 = $252, so the account then holds 1400 + 252 = $1652.
Worked example
A phone costs $590 and is 10% off in a sale. What is the sale price?
- 10% of 590 = 59.
- 590 − 59 = 531.
Answer:$531
Key words
- sales tax
- a percentage added to a price
- discount
- money taken off a price
- simple interest
- interest on the original amount only
Practise this
New questions every time.
Common Core-referenced: 7.RP.A.3