Percent Applications Many consumer applications involve percentages. Some, such as sales tax, markup. commission, and tips, are added onto an amount. Others, such as discount, are subtracted from an amount. Occasionally, two or more) quantities are added to or subtracted from an amount. Sales tax is a payment made to the government on most things that are bought or sold. Sales tax is usually a percentage of the total value of the items. For example, if we buy 560 of ice cream for a party, and the tax rate is 8%, then we would pay a total of 0,08($60) or $4.80 in sales tax. The total price would be $60+ $4.80.0 $64.80 1. Calculate the sales tax and the total price. (Round to the nearest cent.) Pre-tax price and $45.00.6% $45.00,8% 550.00,5.5% $62, 825% tax rate Sales tax Total price A tip is left for a server in a restaurant for providing good service. The tip is usually computed as a percentage (usually 15%-20%) of the total. If the bill was $57.52, a 15% tip would be 0.15(55752) or $8.63, rounded to the nearest cent. Adding the tip to the bill produces a total bill of $57.52 +58.63.or $66.15. 2. Calculate the tip and the total bill. (Round to the nearest cent.) Sub total $41.99 $38.27 58.99 Tip percentage 15% 20% Tip Total bill Adding sales tax to a purchase or a tip to a bill can be thought of as a percent increase. Another application of percent increase involves a store marking up their prices. Stores typically markup their prices by a certain percentage over what the item cost them to acquire or make Percent decrease refers to a quantity that is towered by a certain percentage of the original quantity. One application involving percent decrease involves sales discounts. If a $60 item is on sale at a 25% discount, the amount of the discount is 0.25($60) or $15. The discount is then subtracted from the original price, so the sale price of this item is $60-$15, or $45. 3. Calculate the percent increase or decrease and the resulting price. (Round to the nearest cent.) Initial price $32 S45,00 $45.00 $50.00 Percent change 23% increase 12% increase 12% decrease 13% increase Final price A commission is a bonus paid to someone for being successful. Usually, a commission is a percentage of your total sales. For example, a real estate agent typically gets a 3% commission based upon the selling price of the house. If a house sold for $175,000, the typical realtor commission would be 0.03($175,000) or $5250, The seller of the house pays the commission out of the sales price. In this example, there would be $175,000 - $5250 or $169,750 remaining for the seller. 4. Calculate the commission, and determine how much of the sales total remains for the seller. (Round to the nearest cont.) Sales total S155,000 $155 $173,000 Commission rate 4.5% 1.2% Commission Amount Remaining for the Seller Often, two or more of these increases or decreases are applied in the same problem. The increases must be applied successively, one after the other, and not combined into one percent. For example, if a store marks its prices up by 50% in a state that charges 9% sales tax, you must first increase the price by 50% and then the new price by 9%. You cannot simply increase the price by 59% 5. Rob went to buy a new phone. The original cost of $825 had been marked up by 20%, and Rob had a coupon for 30% off. The sales tax rate is 8,25% 4. What is the price of the phone after the 20% markup is applied? b. What is the price of the phone after Rob applies his 30% off coupon? c. What is the price of the phone after the 8.25% sales tax is applied? (Round to the nearest cent.) 6. Alexis is shopping for clothes. She picks some items totaling $120. She has two coupons, a $10 off and a 15% off. The store says she must first use the $10 off coupon. If the tax rate is 7%, what is her total cost? 7. Paige is selling two different houses. One is priced $150,000 and the other is priced $110,000. If the price of the more expensive house drops 8% while the price of the other house drops 5% before they sell, what is her commission if she makes a 4% commission on the sale? 8. Jacob is selling new cars. He is trying to sell three more cars before the end of the month. Each car has a sale price of $50,000. He has two options to help make the sales; he can either lower the price by 30% and keep his commission at 3%, or he can lower the lower the price by 10% and also lower his commission to 2% If he sells all three cars, how much total commission would he make in each case? Percent Applications Many consumer applications involve percentages. Some, such as sales tax, markup. commission, and tips, are added onto an amount. Others, such as discount, are subtracted from an amount. Occasionally, two or more) quantities are added to or subtracted from an amount. Sales tax is a payment made to the government on most things that are bought or sold. Sales tax is usually a percentage of the total value of the items. For example, if we buy 560 of ice cream for a party, and the tax rate is 8%, then we would pay a total of 0,08($60) or $4.80 in sales tax. The total price would be $60+ $4.80.0 $64.80 1. Calculate the sales tax and the total price. (Round to the nearest cent.) Pre-tax price and $45.00.6% $45.00,8% 550.00,5.5% $62, 825% tax rate Sales tax Total price A tip is left for a server in a restaurant for providing good service. The tip is usually computed as a percentage (usually 15%-20%) of the total. If the bill was $57.52, a 15% tip would be 0.15(55752) or $8.63, rounded to the nearest cent. Adding the tip to the bill produces a total bill of $57.52 +58.63.or $66.15. 2. Calculate the tip and the total bill. (Round to the nearest cent.) Sub total $41.99 $38.27 58.99 Tip percentage 15% 20% Tip Total bill Adding sales tax to a purchase or a tip to a bill can be thought of as a percent increase. Another application of percent increase involves a store marking up their prices. Stores typically markup their prices by a certain percentage over what the item cost them to acquire or make Percent decrease refers to a quantity that is towered by a certain percentage of the original quantity. One application involving percent decrease involves sales discounts. If a $60 item is on sale at a 25% discount, the amount of the discount is 0.25($60) or $15. The discount is then subtracted from the original price, so the sale price of this item is $60-$15, or $45. 3. Calculate the percent increase or decrease and the resulting price. (Round to the nearest cent.) Initial price $32 S45,00 $45.00 $50.00 Percent change 23% increase 12% increase 12% decrease 13% increase Final price A commission is a bonus paid to someone for being successful. Usually, a commission is a percentage of your total sales. For example, a real estate agent typically gets a 3% commission based upon the selling price of the house. If a house sold for $175,000, the typical realtor commission would be 0.03($175,000) or $5250, The seller of the house pays the commission out of the sales price. In this example, there would be $175,000 - $5250 or $169,750 remaining for the seller. 4. Calculate the commission, and determine how much of the sales total remains for the seller. (Round to the nearest cont.) Sales total S155,000 $155 $173,000 Commission rate 4.5% 1.2% Commission Amount Remaining for the Seller Often, two or more of these increases or decreases are applied in the same problem. The increases must be applied successively, one after the other, and not combined into one percent. For example, if a store marks its prices up by 50% in a state that charges 9% sales tax, you must first increase the price by 50% and then the new price by 9%. You cannot simply increase the price by 59% 5. Rob went to buy a new phone. The original cost of $825 had been marked up by 20%, and Rob had a coupon for 30% off. The sales tax rate is 8,25% 4. What is the price of the phone after the 20% markup is applied? b. What is the price of the phone after Rob applies his 30% off coupon? c. What is the price of the phone after the 8.25% sales tax is applied? (Round to the nearest cent.) 6. Alexis is shopping for clothes. She picks some items totaling $120. She has two coupons, a $10 off and a 15% off. The store says she must first use the $10 off coupon. If the tax rate is 7%, what is her total cost? 7. Paige is selling two different houses. One is priced $150,000 and the other is priced $110,000. If the price of the more expensive house drops 8% while the price of the other house drops 5% before they sell, what is her commission if she makes a 4% commission on the sale? 8. Jacob is selling new cars. He is trying to sell three more cars before the end of the month. Each car has a sale price of $50,000. He has two options to help make the sales; he can either lower the price by 30% and keep his commission at 3%, or he can lower the lower the price by 10% and also lower his commission to 2% If he sells all three cars, how much total commission would he make in each case