Lauretta J. Fox
When purchasing items other than food, clothing for children, and prescriptions in the state of Connecticut, one must pay a sales tax in addition to the cost of the item. The sales tax is a seven and one half percent charge applied to the total purchase price of the merchandise. This means that, on taxable items, one must pay an extra seven and one half cents on every dollar spent. The money collected from the sales tax is given to the state. It is used to pay for services provided by the state government.
To compute the amount of sales tax to be added to the purchase price of any item, multiply the rate of percent by the price of the item. The result usually is rounded to the nearest cent. To round any amount of money to the nearest cent, look at the digit to the right of the hundredths place. If this digit is less than five, drop it and keep the cents obtained in the product. If the digit to the right of the hundredths place is five or greater, drop it and add one to the cents obtained in the product.
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Example 1:
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Round the following to the nearest cent:
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a) $5.2763
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b) $.6419
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Solution:
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a) $5.2763 = $5.28
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b) $.6419= $.64
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Example 2:
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Find 7.5% of $495.
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Solution:
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7.5/ 100 x 495/1 = 3712.5/100 = $37.125 = $37.13
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When a person dines in a restaurant the meal is subject to the sales tax. It is also customary to leave a tip for the waiter in appreciation of the services he has performed. This gratuity is usually fifteen percent of the price of the meal.
Fifteen percent of any amount may be calculated mentally by using the following three steps: (1) Find ten percent of the amount by moving the decimal point one place to the left. (2) Find five percent of the amount by taking one half of the answer in step one. (3) Add the answers in steps one and two.
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Example 1:
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Calculate 15% of $3.89 mentally.
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Solution:
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10% of $3.89 = $.389
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1/2 of .389 = .1945
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.389 + .1945 =.39 + .19 = .58
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15% of $3.89 is $.58.
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Example 2:
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Mary bought a purse for $10.95 and a pair of shoes for $18.95. What total amount did she pay if a 7.5% sales tax was added to the price of the items?
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Solution:
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$l0.95 + $l8.95 = $29.90
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Cost of the items
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7.5/100 x 29.90/1 = 224.25/100 = $2.24 Sales Tax
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$29.90 + $2.24 = $32.14 Total Paid
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Example 3:
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Jim had luncheon downtown last week. He ordered a hamburger at $.95, potatoes at $.65, and a coke at $.50. What total amount did he pay if a 7.5% sales tax and a 15% tip were added to the price of the food?:
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Solution:
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.95 + .65 + .50 = $2.10
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Cost of the luncheon
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7.5/100 x 2.10 =$.16
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Sales Tax
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10% of $2.10 = $.21
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5% of $2.10 = $.105 = $.11
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$. 21 + .11 = $.32
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Tip
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$2.10 + $.16 + $.32 = $2.58
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Total Paid
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Solve the following set of problems.
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1. Using a 7.5% sales tax, find the amount of tax and the total paid for the following items:
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Item
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Price
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Sales Tax
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Total Paid
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toothpaste
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.69
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greeting card .
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40
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comb
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.35
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lemonade
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.79
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soap powder
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1.58
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2. During November Mrs. English made the following purchases at a department store.
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skirt
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$14.95
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stockings
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$1.98
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dress
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$45,00
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dusting powder
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$2.75
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blouse
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$17.00
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shoes
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$24.00
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Find the total amount of the bill including a sales tax of 7.5% on each item.
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3. Mrs. Green bought the following items at the Orange Market: 6 lb. roast beef $2.39 lb., 2 lb. coffee $3.29 lb., 3 bottles of soda .39 each (taxable item plus 5¢ deposit on each bottle), 8 bars soap 4 bars for .69 (taxable item), 1 bottle shampoo .99 (taxable item), 10 lb. potatoes $1.19. Find the total amount of the purchase including a 7.5% sales tax on taxable items and deposits on bottles.
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4. Fifteen office workers are planning to go out to dinner. Using the menu below select a dinner for each person. Find the total cost of the bill including a 7.5% sales tax and a 15% tip.
MENU
Appetizers
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Shrimp Cocktail
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$4.55
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Alaskan King Crab Legs
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$4.55
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Iced Cherrystones on half shell
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$3.50
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Clams Casino
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$3.50
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Baked Stuffed Clams
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$3.50
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Entree
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Whole Lobster one and onehalf lbs.
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$17.34
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Lobster Tails
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$16.25
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Fisherman’s Platter
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$12.45
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Baked Stuffed Shrimp
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$9.95
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Shrimp Scampi
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$9.95
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Baked Stuffed Sole
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$9.95
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Alaskan King Crab Legs Fra Diavolo
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$10.95
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Scallops with Lobster Sauce
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$9.95
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Broiled Swordfish Steak
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$9.95
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Reef & Beef
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$11.95
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New York Cut Sirloin Steak
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$10.75
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Filet Mignon with Stuffed Tomato
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$12.95
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Prime Rib Au Jus
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$9.95
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Roast Leg of Spring Lamb
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$9.95
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The above served with Salad Bar, Baked Potato, Vegetable, Soup and Coffee
