Calculating Taxes on Purchases

Math 8Ms. Stewart

Outcome: B3 Create and solve problems which involve finding a, b, or c in the relationship a% of b = c, using estimation and calculation

COPY BLUE TEXT

Harmonized Tax In Nova Scotia, you must pay HST

(Harmonized Sales Tax) on some purchases. The HST is 15% of the purchase price.

What does it mean to have a Harmonized Sales Tax?We pay a portion of the tax to the provincial government and a portion to the federal government.

Why are these taxes collected from consumers?

To pay for services provided by our provincial and federal governments

Health Care

Infrastructure/

Roads

Parks

Schools/Education

Police/Legal System

Snow Removal

Method 1: Calculate the tax first, then add.

Amount of tax = 15% of original cost = 15 x 25 100 = 0.15 x 25

= $3.75The tax is $3.75

Final price = Original cost + Amount of tax

= $25 + 3.75

The final price is $28.75

Method 2: Multiply the original cost by a percent greater than 100.

Final price = 115% of original cost

115% = 1.15 (move the decimal 2 places to the left to convert)

1.15 X 25

The final price is $28.75

The final price is the 100% of the original price plus 15% of the original price for the tax, or 115% in total.

Assignment

From the flyers, choose 1 object and calculate the total cost of the item (including taxes) using Method 1

From the flyers, choose 1 object and calculate the total cost of the item (including taxes) using Method 2

From the flyers choose 3 objects and calculate the total cost of all the items using your choice of method (be sure to include a subtotal before calculating the tax)

SHOW ALL WORK AND CALCULATIONS!