Math
Discounts and tax.
Definition
Discounts reduce a price by a percentage, while sales tax adds a percentage to a price. To find the final price, subtract the discount first, then add the tax on the discounted amount.
How it works · 4 phases
Step by step.
- Find the discount amount: original price × discount rate
- Subtract the discount from the original price
- Find the tax amount: discounted price × tax rate
- Add the tax to get the final price
Examples
Real-world.
- 1 A $50 shirt at 20% off costs $40 before tax
- 2 With 8% tax on a $40 item, the total is $40 × 1.08 = $43.20
- 3 A $200 TV at 15% off plus 6% tax: $200 × 0.85 × 1.06 = $180.20